Control Stock

Control Stock
1. Equity shares owned by major shareholders of a publicly traded corporation. These shareholders have either a majority of the shares outstanding or a portion of the shares that is significant enough to allow them to exert a controlling influence on the firm's decisions.

2. In situations where companies have more than one class of common shares, shares with superior voting power or vote weighting are considered to be control stocks, relative to the inferior class.

1. Shareholders who control a majority of a company's shares effectively have enough voting power to dictate the firm's decisions. As such, their shares can be referred to as control stock.

2. Suppose XYZ Corp. had two classes of common stock, Class A and Class B, and both types of shares carry equal claim to the firm's assets. In other words, if the firm has 100 common shares in total, 50 are Class A shares and 50 are Class B shares. Let's assume that the B shares entitle the shareholder to one vote, but the A shares entitle the shareholder to 10 votes. If you owned one Class A share, you would own 1% of the company's assets, but wield 10 votes at company meetings. An investor who owned one Class B share would have the same 1% claim to the firm's assets, but wield only one vote at company meetings.


Investment dictionary. . 2012.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • control stock — is stock held by a person who directly or indirectly controls the management of the issuing company. The right of the owner or a pledgee to sell control stock is limited by provisions in the Securities and Exchange Acts. American Banker Glossary… …   Financial and business terms

  • control stock — noun shares owned by shareholders who have a controlling interest • Hypernyms: ↑stock …   Useful english dictionary

  • Stock photography — consists of existing photographs that can be licensed for specific uses. Publishers, advertising agencies, graphic artists, and others use stock photography to fulfill the needs of their creative assignments. A customer who uses stock photography …   Wikipedia

  • stock — The goods and wares of a merchant or tradesman, kept for sale and traffic. In a larger sense, the capital of a merchant or other person, including his merchandise, money, and credits, or, in other words, the entire property employed in business.… …   Black's law dictionary

  • stock control — the method of determining how much stock should be held and how much needs to be reordered and when, with the aim of controlling stock holding costs while maintaining efficient operation of the business. Glossary of Business Terms * * * stock… …   Financial and business terms

  • control — 1 noun 1 MAKE SB/STH DO WHAT YOU WANT (U) the ability or power to make someone or something do what you want: Generally your driving s OK, but your clutch control isn t very good. (+ of/over): Babies are born with very little control over their… …   Longman dictionary of contemporary English

  • control — [[t]kəntro͟ʊl[/t]] ♦ controls, controlling, controlled 1) N UNCOUNT: oft N of/over n Control of an organization, place, or system is the power to make all the important decisions about the way that it is run. The restructuring involves Mr Ronson… …   English dictionary

  • stock-in-trade — 1) See inventory See also stock appreciation depreciation; stock control; stock turnover 2) The goods or services that an organization normally offers for sale …   Big dictionary of business and management

  • Stock dilution — is a general term that results from the issue of additional common shares by a company. This increase in common shares of a stock can result from a secondary market offering, employees exercising stock options, or by conversion of convertible… …   Wikipedia

  • Stock management — is the function of understanding the stock mix of a company and the different demands on that stock. The demands are influenced by both external and internal factors and are balanced by the creation of Purchase order requests to keep supplies at… …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”