If you own 1,000 shares of stock and you can cast 5,000 votes for a particular director, then the stock features:
A) Cumulative voting
B) Straight voting
C) Majority voting
D) None of the above

Question

Quizplus · Accepted Answer

Cumulative voting allows a shareholder to accumulate all of their voting power and cast multiple votes for a single director if they choose to do so. In this scenario, the shareholder can cast 5,000 votes for a single director, indicating that they are using cumulative voting rather than straight voting, where they would only be able to cast 1,000 votes per director. Majority voting refers to a system where directors are only elected if they receive a certain percentage of votes, typically a majority, which is not relevant to this scenario.

If You Own 1,000 Shares of Stock and You Can