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voting right

Definition

Delegable right of a common stock (ordinary share) holder to take part in a firm's decision making process, by voting on matters of policy and to choose members of the board of directors. Such matters include issuance of additional stock, stock splits, and substantial changes in the firm's business. Most common shares have one vote each, and preferred stock (preference share) holders usually also have the right to vote when their dividends remain unpaid for a specified period.

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