nonvoting stock

(redirected from Nonvoting Stocks)

Nonvoting stock

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

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.

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.
References in periodicals archive ?
This permits an empirical examination of the factors affecting the premia of voting over nonvoting stocks.
In anticipation of possible exchange offers, the value of the remaining nonvoting stocks generally increased relative to the voting shares.
Union Bank of Switzerland (UBS) and Ascom offered to exchange voting for nonvoting stock during this period.
The sample consists of 41 pairs of one voting and one nonvoting stock.
The value of a nonvoting stock (NV) of the same company (adjusted for cash flow rights).
Because relative stock prices will be considered, we need a relative measure of liquidity - the difference between the average logarithmed spreads of the voting and nonvoting stock (LSPRDIF).
An improvement in the relative liquidity of the nonvoting shares by 1% will reduce the premium of the voting over the nonvoting stock by over 12%, ceteris paribus.