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What are Class A Shares?

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What are Class A Shares?

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Class A shares are a tier of stock that has either more or less voting rights than those in the Class B tier. Often, people think that Class A shares actually carry more voting rights than their Class B counterparts. The reality is that the amount of rights depends on the particular stock. As such, stockholders are wise to be careful in assessing Class A shares because some companies try to hide the limited voting rights of certain stocks by giving them Class A status. Class A shares are not available for purchase by the general public, and they are not eligible for trading like other stocks. Instead, these shares are held by a company’s management and used to provide some level of protection against stock-market fluctuations. This setup allows an organization’s management to control a portion of the company’s equity and hold on to a significant amount of voting rights. This type of stock classification is said to be helpful for allowing a company’s management to focus on business goal

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A shares means you are paying a load – a commission to a broker. That money comes right off the top of what you are putting into an investment. You are making the mistake of thinking that past performance predicts future results. It doesn’t. You are chasing past returns. Don’t. You need to learn about investing before you invest. Here’s info about fees: http://www.finra.org/investorinformation…

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