Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Z-share

What it is:

Z-shares are shares of mutual funds for the employees of those mutual funds.

How it works (Example):

For example, let's say John Doe works in the human resources department of the XYZ Fund Co. As part of his compensation package, XYZ gives John 100 options a year. These options allow him to purchase up to 100 shares of XYZ Fund every year at a set strike price.

Why it Matters:

Z-shares are similar to stock options or stock grants for employees of mutual fund companies. They allow mutual funds to provide financial incentives similar to what other companies do with their own shares of stock. Similar to stock options, Z-shares provide a way for mutual fund companies to motivate and encourage loyalty among employees.