What Is the Civil Rights Act of 1964? The Civil Rights Act of 1964 was landmark legislation that addressed the prejudice occurring in society in the U.S. at the time. Through its 11 titles, it banned discrimination and segregation based on race, religion, natural origin, and sex in employment and in all public places, such
What Is a Claims Reserve? A claims reserve is a reserve of money that is set aside by an insurance company in order to pay policyholders who have filed or are expected to file legitimate claims on their policies. Insurers use the fund to pay out incurred claims that have yet to be settled. The
What Is a Class of Shares? A class of shares is a type of listed company stock that is differentiated by the level of voting rights shareholders receive. For example, a listed company might have two share classes, or classes of stock, designated as Class A and Class B. Owners of companies that have been
What Is a Class Action? A class action is a legal proceeding in which one or more plaintiffs bring a lawsuit on behalf of a larger group, known as the class. Any proceeds from a class-action suit after legal fees, whether through a judgment or a settlement, are shared among all members of the class.
What Are Class A Shares? Class A shares refer to a classification of common stock that was traditionally accompanied by more voting rights than Class B shares. However, there is no legal requirement that companies structure their share classes this way. For example, Meta (formerly Facebook) awards more voting rights to Class B shares. In
What Are Class B Shares? Class B shares are a classification of common stock that may be accompanied by more or fewer voting rights than Class A shares. Class B shares may also have lower repayment priority in the event of a bankruptcy. A detailed description of a company’s different classes of stock is included
What Is Classical Economics? Classical economics is a broad term that refers to the dominant school of thought for economics in the 18th and 19th centuries. Most consider Scottish economist Adam Smith the progenitor of classical economic theory. However, Spanish scholastics and French physiocrats made earlier contributions. Other notable contributors to classical economics include David Ricardo, Thomas Malthus
What Is a Classified Board? A classified board is a structure for a company’s board of directors (BOD) in which some directors serve for different term lengths, typically of between one and eight years, depending on their particular classification. Under a classified system, longer terms often awarded to more senior board positions (i.e., the chair
What Is Classified Insurance Classified insurance is coverage provided to a policyholder that is considered more risky and thus less desirable to the insurer. Classified insurance, also known as substandard insurance, is most commonly associated with life insurance. Key Takeaways Classified insurance is coverage provided to a policyholder that is considered more risky and thus less desirable
What Is a Classified Loan? A classified loan is a bank loan that is in danger of default. Classified loans have unpaid interest and principal outstanding, but don’t necessarily need to be past due. As such, it is unclear whether the bank will be able to recoup the loan proceeds from the borrower. Banks usually
