Share Class
Definition
A category of shares carrying a defined set of rights, preferences, and restrictions. A company typically has multiple share classes including ordinary or common shares and one or more series of preference shares. Each share class must be documented in the company's constitutional documents and reflected separately in the cap table.
Common Misapplication
The most common misapplication is treating all preference shares as a single class regardless of the series and the terms applicable to each series. Series A preference shares and Series B preference shares may have different liquidation preference multiples, anti-dilution provisions, and participation rights, and must be treated as separate classes in the cap table and waterfall analysis.
FFI Standard Reference
This term is defined and applied in Book 3, Section 3.1: The Cap Table Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Share Class. https://ffistandard.org/glossary/share-class/. 2026.