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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

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 pool all of the votes behind just one director if they want.

Example

You have 500 shares of XYZ Corp., and there are 5 directors up for election. That means you have 2,500 votes (500 shares x 5 directors) to allocate, and you can put them all behind your cousin Billy.