Assented Stock

finance a la shmoop- what is non-voting stock? hmm well it's stock that doesn't

vote. bet you're shocked to hear that. most people need a PhD in finance to [stock wears an "I didn't vote" sticker.

understand that notion. but really that's it in most cases common stock carries

with it the right to vote. and in fact it's the common shareholders who elect

the board of directors. but every now and then a potentially hostile investor

comes along and buys or wants to buy a big chunk of stock in a company. well the

amount might be a block large enough to elect that potentially hostile investor

slate or the group of people that investor wants to place on the board to

represent her evil intentions .when that happens companies will often create a

class of common stock similar in every way to its normal common only with its [stock checklist of privileges listed]

voting rights stripped away .that way the investor can own an economic interest in

the company but not monkey with the board.