Stockholder approval

Also called: shareholder approval

In one line

A formal vote of shareholders required for major company decisions, such as a sale, new share class or big financing.

In plain English

Some decisions need not just the board but a vote of shareholders. As a minority common holder, your influence is usually small, but major events like an acquisition typically require this approval.

If you were explaining it to a 5-year-old

For really big club decisions, all the toy-owners get to vote — though the kids with the most toys have the loudest say.

Why it matters when you sell

Stockholder approvals shape major events like acquisitions; as a small holder you rarely sway them, which underlines your minority position.

Put it to use

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Sources

A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.

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Stockholder approval

Related terms

Put it to use