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Voting rights

Also called: voting shares

In one line

The right attached to certain shares to vote on company matters, such as electing directors or approving a sale.

In plain English

Some shares carry votes; some don't. Common stock usually votes, but as a small holder your influence is minimal. Certain decisions still need shareholder votes overall.

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

Some toys come with a 'say' in club decisions. Owning a few gives you a tiny voice; owning lots gives you a big one.

Why it matters when you sell

Limited voting power is part of why minority stakes are discounted, and it shapes how much control you have over an exit.

Related terms

Put it to use

What's a fair discount?

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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.

Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.