Classified stocks are shares of a company that are categorized into different classes, often denoted as Class A, Class B, and so on. These classifications allow companies to assign varying rights and privileges to different groups of shareholders. This structure is commonly used to balance control between founders, management, and public investors.

Characteristics of Classified Stocks:
1. Voting Rights: One of the main distinctions is the allocation of voting power. For example, Class A shares might have more votes per share compared to Class B shares, allowing founders or key stakeholders to retain control over company decisions despite owning fewer shares.

2. Dividend Rights: Different classes may also have varying dividend entitlements. Some classes may receive higher or more consistent dividends, while others might prioritize reinvestment for growth.

3. Market Availability: Certain stock classes may only be available to specific investors. For instance, Class A might be publicly traded, while Class B is reserved for employees or insiders.
Purpose:
Classified stocks are typically used to preserve control for founding members or key management while still raising capital from public or private investors. Companies like Google (Alphabet Inc.) and Facebook (Meta Platforms) use this structure to ensure operational stability while accommodating external investment.