Control Stock

1.Control stock refers to the shares owned by the major shareholders of a publicly traded corporation.  Since major shareholders have controlling interest, their shares are called control stock.

2.If a company has stock of different classes with different voting rights, then the one with preferential voting rights is called control stock. For example, if a company had Class A shares worth 1 vote each and Class B shares worth 10 votes each, the Class B shares would be known as control stock.

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