how to pick between multiple share classes of one company

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Eg for Manulife, there is MFC and then several preferred classe MFC.PR.*. It’s the same company so in terms of fundamentals and all, surely they are on the same footing. But the prices can be quite different, and although the overall variations are similar, there are differences. Does it matter? How do you choose?

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Asked on January 28, 2021 4:03 pm
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Hi there,

In this case, you are comparing both the preferred shares and common shares. Preferred shares are a different class of shares and have different conditions around them. Won't go into great details, but investors who just want to buy and hold the stock with no other parameters, you are looking for the common shares of that stock. These are the most liquid and the most commonly traded. In this case, the common shares are MFC.TO. Typically this is the case, the common share is the one without a .* at the end.

Not always the case. For example ATD.B and CCL.B are the common shares for Alimentation Couche-Tard and CCL Industries. Bottom line, you are looking for the common shares. Anything with .PR is the preferred share and is likely not what you are looking for.

Mat

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Posted by Mathieu Litalien
Answered on January 28, 2021 4:17 pm
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Private answer

Hi there,

In this case, you are comparing both the preferred shares and common shares. Preferred shares are a different class of shares and have different conditions around them. Won't go into great details, but investors who just want to buy and hold the stock with no other parameters, you are looking for the common shares of that stock. These are the most liquid and the most commonly traded. In this case, the common shares are MFC.TO. Typically this is the case, the common share is the one without a .* at the end.

Not always the case. For example ATD.B and CCL.B are the common shares for Alimentation Couche-Tard and CCL Industries. Bottom line, you are looking for the common shares. Anything with .PR is the preferred share and is likely not what you are looking for.

Mat

Marked as spam
Posted by Mathieu Litalien
Answered on January 28, 2021 4:17 pm