Founders' share

Founders' share is a stock owned by the firm's founders that have sole voting rights but restricted dividends for a specified number of years.

Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Founders' shares. Stock owned by the firm's founders that have sole voting rights but restricted dividends for a specified number of years.

According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),

Founders' shares. Stock owned by the firm's founders that enables them to maintain control over the company without having to own a majority of stock.

Related concepts

• Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.

Related lectures

• Introduction to Financial Management.