ILC Glossary of Financial Terms: V

From Venture Capital to Voting Trust

Venture Capital:

Money raised by companies to finance new, risky ventures.

Volatility:

The rate of change in the price of a security over a given time.

Volume:

The amount of shares bought and sold on a stock exchange.

Voting Right:

The stockholder's right to vote in the affairs of the company. Most common shares have one vote each and preferred stock usually only has the right to vote when its dividends are in default. The right to vote may be delegated by the stockholder to another person, called voting by proxy. Voting rights give the stockholder a say in the company's affairs and such rights can increase the value of the stock.

Voting Trust:

A device to place the control of a company in the hands of certain managers for a given period of time, or until certain results have been achieved. This is done by shareholders surrendering their voting rights to a trustee for a specified period of time.