Definition
Differential Voting Rights (DVR) are a type of share that gives shareholders different voting rights compared to ordinary shares. These shares may have either more or fewer voting rights but usually offer other benefits, such as higher dividends.
Example
A company may issue DVR shares that give investors one voting right for every 10 shares, while regular shares provide one vote per share. In return, DVR shareholders may receive a higher dividend than ordinary shareholders.
Caution
DVR shareholders may have limited control over company decisions because of their reduced voting rights. Investors should understand the rights and benefits attached to these shares before investing.