Question: Moreover, non - voting shares may exhibit lower volatility compared to voting shares because they are less affected by shifts in corporate governance and control
Moreover, nonvoting shares may exhibit lower volatility compared to voting shares because they are less affected by shifts in corporate governance and control battles. This structure can also signal that the market has confidence in the company's management and longterm strategy, offering reassurance to investors who prioritize steady financial performance over direct influence on company decisions. As an investor, I would consider buying these stocks if my goal is to benefit from the companys performance and longterm growth, rather than to influence its decisionmaking. For example, if I am more interested in capital gains and dividend income, then owning nonvoting shares might be a good choice.
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