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Simple English definitions for legal terms
voting stock
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A quick definition of voting stock:
Voting stock is a type of stock that gives the holder the right to vote in important decisions made by the company, such as electing board members. It also allows the holder to share in the company's profits and assets. This is different from other types of stock, like preferred stock, which may not have voting rights.
A more thorough explanation:
Voting stock is a type of stock that gives the shareholder the right to vote on important company decisions, such as electing the board of directors. It is one of the ways that shareholders can have a say in how the company is run.
For example, if a company has 100 shares of voting stock and a shareholder owns 10 of those shares, they have 10% of the voting power. This means they can cast 10% of the votes in any shareholder meeting.
Another example is if a company wants to merge with another company, the shareholders with voting stock would have the power to approve or reject the merger.