supervoting stock

supervoting stock

A class of stock that provides its holders with larger than proportionate voting rights compared with another class of stock issued by the same company. For example, Dow Jones & Company has two classes of common stock: supervoting Class B has ten votes per share compared to the firm's regular common stock with one vote per share. At the end of 2001 Class B shares composed only about 20% of outstanding common stock but enjoyed nearly three quarters of the total voting power. Supervoting stock permits a limited number of stockholders to retain or gain control of a company without having to own more than 50% of all common stock outstanding. Also called control stock. Compare limited-voting stock.