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The American Heritage Dictionary of Business Terms » supervoting stock
supervoting stock
supervoting stock definition - business
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.
The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
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