Athletic clothing retailer Under Armour Inc. has created a third class of non-voting common stock, the company said late Monday. The Class C stock will be distributed to holders of the company's Class A and Class B common stock through a stock dividend, a move that will have the same effect as a 2-for-1 stock split. Each holder of Class A and Class B stock will be entitled to one share of the Class C stock, and will have the same rights as the existing Class A stock, apart from voting rights. The company will determine a ticker for the Class C stock at a later date. Under Armour will hold a special meeting on Aug. 26 to allow shareholders vote on certain amendments to its charter, related to the creation of the new class of stock. Shares were not yet active in premarket trade, but are up 20% in the year so far, while the S&P 500 has gained 1.2%.
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