What is Voting Stock?

Voting stock is shares in a business that give its holders the right to vote for matters brought up during shareholder meetings. These matters commonly include the election of the board of directors and the appointment of auditors for the annual audit. Common stock is usually considered to be voting stock. Activist investors typically seek the support of those investors owning voting stock, attempting to alter their decisions on upcoming voting matters.

The Difference Between Voting Stock and Common Stock

While most common stock is considered to be voting stock, it is possible for common stock to be issued without a voting feature. This means that the holder of non-voting common stock has no ability to vote on a variety of corporate issues at the annual shareholders meeting, but is still entitled to any dividends authorized by the board of directors. This situation most commonly arises when the founders of a business want to take it public, but do not want to give up control over the organization.