This study investigated possible differences in the perceptions of three stakeholder groups (teachers, students, and parents) regarding grading and grade reporting. Data were gathered through questionnaires completed by 215 teachers in 2 states, 4,265 elementary school, middle school, and high school students, and 944 parents. Different forms were developed for the different groups, but the items were nearly identical. Teachers at the elementary level tended to believe that an ideal distribution of grades would have most students receiving the highest grades possible. The ideal distribution patterns of teachers at other levels and most students were similar, but parents had more mixed ratings, with parents of elementary school students generally perceiving that students would attain high grades, and those of older students expecting a more even distribution of grades across grade categories. Overall, as grade level progressed, teachers, parents, and students all tended to rank communicating with parents as a less important purpose of grading and providing feedback to students as a more important purpose. All groups recommended the inclusion of multiple sources of information in determining grades, but parents seemed less well informed about the evidence to be considered in determining grades. (Contains 4 tables and 13 references.) (SLD)