Non-voting stock or limited 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.

Loan Stock

Loan stock refers to common or preferred stock that is used as collateral to secure a loan from a financial institution or other party. The loan can be based upon either a fixed or adjustable interest rate. Lenders usually maintain physical control of the stock until the loan is repaid.