controlling interest(redirected from Majority interest)
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Fifty percent plus one ownership of the stock in a publicly-traded company. This gives the person or company with the controlling interest outright control of the company's operations, especially the election of its board of directors. Some investors with controlling interest are not involved in the daily operations of the company, but most are. Indeed, an individual person with controlling interest is often the company's founder. The person or company with controlling interest is called the majority shareholder. See also: Parent company.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail to participate in decision making.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.