Common and preferred are the two main forms of stock; however, it's also possible for companies to customize different classes of stock in any way they want. The most common reason for this is the company wanting the voting power to remain with a certain group; therefore, different classes of shares are given different voting rights.

For example, one class of shares would be held by a select group who are given ten votes per share while a second class would be issued to the majority of Investors who are given one vote per share.

Class A - Shares

Companies wishing to give extra or different voting rights to a certain group of shareholders can choose to issue different classes of stock. Class A stock typically comes with extraordinary voting ability; holders may have 10 votes for every share they own. This class is generally reserved for insiders, family members and founders who want to retain control of the company without owning a majority of the stock. Class A shares add either 'a' or '.A' to the symbol.

Class A shares is a term for both stocks and mutual funds.  With stocks, Class A shareholders have the most rights of any shares issued by the company.  So, why would an investor purchase a class a share over a common share?  The short answer is that an investor or owner in the company will  purchase Class A shares to retain control of the company.  For example, if a company has 1,000,000 shares of common stock to issue, it can also issue 200,000 shares to the owners where the Class A shares have a voting right of 10 to 1.  Therefore, while there are more common shares released to the public, the owners have a controlling interest due to the fact the Class A shares will have 2M votes.  Below is a list of common rights that are associated with Class A stockholders:

1. Special voting and vetoing rights
2. Priority when a company liquidates assets
3. The right to convert from preferred stock to common stock

The above are just some examples of special rights assigned to Class A stockholders, but the majority of companies will have additional rights and rules listed in the company’s by-laws.

Class B - Shares

When a company issues more than one class of stock, the B shares usually cover the majority of stock outstanding and come with one vote per share. These shares are distinguished by stock symbols that add either 'b' or '.B' to the end. While these are standard parameters for 'B' shares, companies have wide discretion in allocating voting rights among different share classes.

Class B shares are either 1) common stocks or 2) preferred stocks that generally give fewer benefits to share holders than class A shares

While class B shares offer shareholders fewer benefits than class A shares if the company issuing the stock is well managed, retail investors needn’t be concerned about the different classes of stock. In most cases, different shares are issued to give the company's managers, insiders and directors a greater degree of power over the company and to provide a better defense against such events as hostile takeover attempts. It should also be noted that differences in share class does not affect the average investor’s share of the profits or benefits from the overall success of the company.

There are many factors in determining which class or diversification process of class or classes should be acknowledged in regards to meeting your Goals.