What is a Voting Stock?
Voting stocks are shares of stock issued by a licensed corporation that provide the responsibility and privilege for the shareholder to vote in meetings dealing with the function of the company. Not all stock carries privileges of this type. While nonvoting stocks will provide some benefit to shareholders, voting stock typically provides a higher rate of return along with the enhanced ability to have voice and vote in company matters. Many companies will issue more than one class or type of stock. As an example, a company that operates with an employee stock ownership plan usually will issue one level of stock for company executives and upper management, and a different class or level of stock for hourly employees and mid-level managers. Shares that would function as voting stock are extended to the executive employees of the company, while mid-level managers and hourly employees receive non-voting shares. When a company issues two classes of stock, the voting stock will often provide
