I was watching shark tank the other day and the owner offered “Advisory shares” vs regular shares. I tried googling it and it still didn’t make any sense.
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Advisory shares, also known as non-voting shares, are a type of stock that do not have voting rights. This means that the holders of advisory shares do not have a say in the company’s decision-making process, such as voting for board members or on proposals put forth by the company. They are still entitled to receive dividends and to share in the company’s assets in the event of a liquidation, but they do not have the same level of control as holders of voting shares. Some companies issue advisory shares as a way to raise capital without giving up control of the company.
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