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 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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
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.
References in periodicals archive ?
* The number of shares of stock, including nonvoting stock, outstanding at the time the revocation is made; and
But there is fundamental disagreement among scholars and investors about whether nonvoting stock is beneficial or harmful.
For those offering some type of stock, the strong preference (about two-thirds) was to offer nonvoting stock. In preferred stock offerings, a liquidation preference, consistent with what one would expect to see in a traditional round of seed financing, was the most frequent right and preference.
In certain instances the acquiring company can give as part of the consideration, a minor amount of cash, nonvoting stock, securities, or other consideration.
The daughter received gifts of nonvoting stock to allow her to receive income from the business without having control.
(6) The withdrawal price was equal to the arithmetic average of Pirelli nonvoting stock prices in the six months preceding the publication date of the notice calling the extraordinary nonvoting shareholder meeting, as required by Article 2437- ter, Paragraph 3 of the Italian Civil Code.
The decedent bequeathed all of the nonvoting stock to charity, while bequeathing the voting stock with control to his son.
(66) In reality though, the Board looks to restrict ownership positions in banks to less than 15%, voting and nonvoting stock combined, and limits ownership stakes further to less than 10% when an investor seeks to appoint a director.
At least 80% of the total combined voting power or value of all classes of stock (excluding nonvoting stock which is limited and preferred as to dividends) of each corporation, and more than 50% of the total combined voting power or value of all classes of stock (excluding nonvoting stock that is limited and preferred as to dividends) of each corporation, taking into account the stock ownership of each owner only to the extent that the owner's interest is identical in each corporation.
The parents can then recapitalize the business into voting and nonvoting stock. This does not create a prohibited second class of stock as long as the difference in voting rights does not create unequal distribution and liquidation preferences.
Here's how it works: A Stock is voting stock and B Stock is nonvoting stock. The B Stock is distributed among my employees and myself, while I keep all of the voting stock.