to segment the rights to which certain common shareholders are entitled, companies often separate common equity into more than one class of shares called classified stock.

Classified shares are publicly traded corporate shares that have different share classes, typically designated by Class A and Class B shares. A thorough description of the many classes of common stock and their individual qualities is set out in a company's bylaws and charter, although most often classed shares differ by the number of votes granted by owning those shares, or the absence thereof. Dividend rights may also differ between classes of shares.

A complex capital structure is exemplified by classified shares. Companies with complicated capital structures may have a mix of multiple types of common stock classes, each with its own set of voting rights and dividend rates.

Companies develop different share classes for a variety of reasons, including dividend rights and liquidation preference.

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