When choosing an investment, especially a mutual fund or stock, you have options, including which share classes you want. Some share classes are limited to certain types of investors, while others are available to anyone with a brokerage account.

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Why do share classes matter to investors?
Whether you're investing in stocks or mutual funds, it's important to understand share classes because they tell you other things about the investment. For example, knowing you're looking at two different mutual funds -- one that's a Class B and the other a Class C -- would help you better prepare for the fees that await you and ensure that you know to look for terms that could remove load fees over time.
When it comes to stocks, knowing what class you're buying tells you how many votes you get and your priority in case of a business bankruptcy. Buying a stock in a lower class may save you money, but it could also cost you if the business goes under.