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.
