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.