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Class A and class B are two different classes of stocks, known as classified stocks, which are issued publicly. Although most companies issue only one type of stock to public (known a common stock) having same voting and dividend rights, some companies issue more than one type of stock (class A, B, C...) to achieve some specific goals. The goals can be

1. For retaining of company control by the founders
2. To offer fixed (higher) dividend to some shareholders, or
3. To offer shares for higher/lower prices than existing

For example, class A stocks of a company may have a voting right ‘one vote per share’ and class B stocks may have a voting right ‘ten vote per share’. In this case, class A stocks should be widely traded in public and class B should be owned by some specific individuals who controls the company.

The practice of issuing different classes of stocks started in 1996, when Berkshire Hathaway of which 40% shares are owned by Warren Buffett at that time issued a new class B stock to public having one-thirtieth price and voting right of their existing class A stocks. Class A stock (ticker symbol: BRKa or BRK.A) holders can exchange their stocks for 30 class B stocks (ticker symbol: BRKb or BRK.B), but no exchange in opposite direction was allowed.

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