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Finance Glossary

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Cumulative Voting

Definition:

It's about how companies' boards of directors are voted in or out. In cumulative voting, shareholders get one vote for each director, but they can accumulate all of them and put all of the votes behind just one director. That is, if you have 500 shares of XYZ Corp., and there are 5 directors up for election, you have 2,500 votes to allocate and you can put them all behind your cousin Billy.

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