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The process of converting issued shares from one class or group into another is called re-designation, re-classification, re-naming or converting of shares. It is referred to as share re-designation in the Companies Act 2006, however the process is more usually referred to as share re-classification.
Explanation of income reclassification Income reclassification refers to changes that companies make to all or part of previously reported dividend (or interest) income to some other tax classification.
Reclassification occurs when a mutual fund company changes the share class of certain issues. This may be done to add or remove a sales load from fund shares, or to require larger minimum investments for purchase.
Class A shares refer to a classification of common stock that was traditionally accompanied by more voting rights than Class B shares. Traditional Class A shares are not sold to the public and also cant be traded by the holders of the shares.
Share reclassification is where a company limited by shares converts its shares from one class to another.

People also ask

An exchange is actually two transactions, selling one fund and using the proceeds to buy another fund in the same account. Performing an exchange in a taxable account is a taxable event.
Distributions that qualify as a return of capital arent dividends. A return of capital is a return of some or all of your investment in the stock of the company. A return of capital reduces the adjusted cost basis of your stock.
Reclassification occurs when a mutual fund company changes the share class of certain issues. This may be done to add or remove a sales load from fund shares, or to require larger minimum investments for purchase.
Since this is not considered a sell of one share class and a purchase of the other, no gains or losses are recognized and it is not a taxable event.
Canadian mutual funds can be in the legal form of a trust or a corporation. When they are in the form of a corporation (often called corporate class funds), sometimes investors are able to exchange shares of one class of the mutual fund corporation for another class, with no taxable transaction created by the switch.

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