Nonvoting Stock

Nonvoting stock

A security that does not entitle the holder to vote on the corporation's resolutions or elections.

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nonvoting stock

Stock in which the holder has no vote in the election of directors, the appointment of auditors, or other matters that may be brought up at the annual meeting. Corporations sometimes create a special class of nonvoting stock to restrict corporate control only to certain groups. Most preferred stock is nonvoting. Compare voting stock.

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Nonvoting Stock

Stock in a publicly-traded company that does not give the holder the right to vote at the company's annual meeting. Nonvoting stock usually has other rights associated with it to compensate for the lack of ability to vote. For example, most preferred stock is nonvoting, but preferred stock has a guaranteed dividend, while most voting stock does not.