The Price of a Vote: Nonvoting Stock Discounts and the Relationship to Market Risk

Section 1.0: Introduction

When valuing a for-profit company where there are two issues of similar common stock on the balance sheet, and one issue receives voting rights and the other does not (ceteris paribus) creates a valuation challenge for the analyst. 

There are several reasons why a company may choose to issue both voting and nonvoting stock.