Non-voting Stock

Non-voting stock is stock of a corporation that is generally preferred stock. These shares do not provide the owner of the shares the right to vote for directors and on other important matters. Non-voting stock is sometimes issued by newly formed corporations that have acquired the assets of another corporation in connection with a business acquisition. The non-voting stock may be issued to the seller of the acquired assets. This has the effect of reducing the cash that needs to be paid for the assets while providing the seller of the assets with an ownership interest in the new company.

Restricted Corporate Stock

 

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