Stock classes refer to the different types of ownership in a company, each with its own distinct rights and privileges. The most common stock classes are Class A and Class B, with Class A typically having more voting rights and Class B having limited or no voting rights. Other types of stock classes include Class C, which often has no voting rights but carries a higher dividend rate, and dual-class stock, which separates voting rights from ownership rights. Additionally, some companies may have a weighted voting rights structure, where certain classes of stock have more voting power than others. The specific number and distribution of stock classes varies from company to company and is determined by its management and ownership structure.

Stocks are categorised into different classes based on their characteristics and the rights they offer to shareholders. The most common types are common stock and preferred stock. Common stock grants voting rights, allowing shareholders to influence corporate decisions, but dividends are not guaranteed. Preferred stock typically lacks voting rights but offers fixed dividends and priority in asset claims during liquidation. Some companies issue Class A and Class B shares, where Class A may have more voting power (e.g., one vote per share) while Class B shares have reduced or no voting rights. Additionally, growth stocks focus on capital appreciation, while value stocks are undervalued with steady dividends. Dividend stocks provide regular income, whereas penny stocks are high-risk, low-priced shares. Understanding these classes helps investors build a diversified portfolio.