Control Stock

Posted in Finance, Accounting and Economics Terms, Total Reads: 332
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Definition: Control Stock

Control stocks are the equity shares held by major shareholders of a publicly traded company. These shareholders own a considerable portion of shares and hence have ‘controlling interest’ in the firm.


In cases of companies with more than one class of shares, the shares with superior voting rights are considered control stocks.


Control stocks may or may not be traded on public exchanges. This is in contrast to Restricted Stocks which are not publicly traded and are given to company insiders to control sale of shares on open market.

 



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