Classes of shares

(1) Mutual funds can have multiple classes of shares with claims on a single portfolio. Each class permits investors to purchase the portfolio in a different way. Class A shares might give investors the option of paying a front-end sales load while Class B shares give investors the option of paying a contingent deferred sales charge. In a few cases, a fund may have both conventional and exchange-traded share classes.
(2) Corporations can have different classes of shares based upon voting rights (Class A shares might have one vote for each share and Class B shares might have one vote for each ten shares) or participate in different components of the company´s earnings, as in the case of target stock.