Differential Voting Rights
Differential Voting Rights (DVRs) are special types of shares issued by companies that provide shareholders with either more or fewer voting rights compared to regular shares. For instance, a DVR share with fewer voting rights may offer higher dividends to compensate for the reduced influence in company decisions. Companies wishing to issue DVR shares must conduct a postal ballot and meet specific regulatory requirements. Additionally, companies typically need a strong financial track record to issue DVR shares, ensuring that they can maintain investor confidence and comply with the rules set by regulatory bodies.
Related Terms
Intrinsic Value Of Share
Intrinsic value of a share refers to its true or actual value, based on fundamental...
Cash Conversion Cycle
The Cash Conversion Cycle (CCC) measures the days it takes a company to convert inventory...
Bull Market
A bull market describes a sustained upward trend in the stock market. It signals optimism...
Free Cash Flow
Free cash flow (FCF) in accounting and earnings reports represents the cash a company retains...
Annual Earnings Change
An Annual Earnings Change refers to the difference in a company’s earnings between the current...
Bounce Trading
Bounce trading involves buying a security when its price drops to a support level, expecting...
