A share
Encyclopedia
:For the A share traded on the Shanghai and Shenzhen stock exchanges, see A share (mainland China)
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In finance
the term A share has two distinct meanings, both relating to securities
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See also:
A share (mainland China)
A shares are specialized shares of the [Renmembi]]currency that are purchased and traded on the Shanghai and Shenzhen stock exchanges.This is contrast to Renmembi B shares which are owned by foreigners who cannot purchase A-shares due to Chinese government restrictions.-See also:* A share * B...
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In finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
the term A share has two distinct meanings, both relating to securities
Security (finance)
A security is generally a fungible, negotiable financial instrument representing financial value. Securities are broadly categorized into:* debt securities ,* equity securities, e.g., common stocks; and,...
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- The first is a designation for a 'class' of commonCommon stockCommon stock is a form of corporate equity ownership, a type of security. It is called "common" to distinguish it from preferred stock. In the event of bankruptcy, common stock investors receive their funds after preferred stock holders, bondholders, creditors, etc...
or preferred stockPreferred stockPreferred stock, also called preferred shares, preference shares, or simply preferreds, is a special equity security that has properties of both an equity and a debt instrument and is generally considered a hybrid instrument...
. A shares of common or preferred stockStockThe capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
typically have enhanced voting rights or other benefits compared to the other forms of shares that may have been created. The equity structure, or how many types of shares are offered, is determined by the corporate charter.
- The other distinct meaning is a relatively standard way of pricing sales charges (loads) on mutual fundMutual fundA mutual fund is a professionally managed type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities.- Overview :...
s in the United StatesUnited StatesThe United States of America is a federal constitutional republic comprising fifty states and a federal district...
. In an A share, the sales load is up front, typically at most 5.75% of the amount invested. In contrast is the B share that does not have an upfront charge, but instead has higher ongoing expenses in the form of a higher 12B-1 fee, and a contingent deferred sales charge that only applies if the investor redeems shares before a specified period. The maximum A share sales load is decreased for larger investment amounts as a volume discount.
See also:
- List of finance topics
- A share (mainland China)A share (mainland China)A shares are specialized shares of the [Renmembi]]currency that are purchased and traded on the Shanghai and Shenzhen stock exchanges.This is contrast to Renmembi B shares which are owned by foreigners who cannot purchase A-shares due to Chinese government restrictions.-See also:* A share * B...