17 Questions
What is the primary purpose of a proxy in a shareholder meeting?
To transfer the right to vote on the stockholder's behalf
What happens to a proxy if the stockholder attends the meeting?
It is automatically revoked
Why must a company provide stockholders with information about items to be voted on?
To comply with SEC regulations
What is the term for a situation in which a group of shareholders tries to influence the outcome of a vote?
Proxy contest
What is the responsibility of a Member BD firm in relation to proxy voting?
To ensure customers are alerted to all financial matters concerning issuers
What is the primary benefit of voting by proxy for a stockholder?
To avoid attending the meeting in person
What is the primary benefit of cumulative voting for a smaller investor?
Ability to allocate total votes in any manner they choose
What is a potential risk associated with common stock investments?
Market risk and potential loss of purchasing power
Which of the following is a type of voting that benefits larger shareholders?
Statutory voting
What is the primary reason for investing in common stock?
Potential capital appreciation
Which of the following is NOT a type of preferred stock feature?
Statutory
What is a common scenario in which a company would issue bonds or convertible securities?
Mergers and acquisitions
What is the procedure if a customer does not return the proxy by the 10th day before the annual shareholder meeting regarding minor importance matters?
The member may vote the shares as it sees fit.
What reimbursement do member BD firms receive from issuers?
Reimbursement for all costs relating to the forwarding of proxy materials.
In the case of a merger or issuance of additional shares, what is the requirement for member firms regarding customer proxies?
Members must obtain explicit customer instructions.
What is the role of a member firm in relation to street name stock?
Nominal owner of record.
What is the responsibility of a member firm regarding the voting of street name stock?
Vote the shares in accordance with the beneficial owner's wishes.
Learn about shareholders' voting rights, including attending meetings in person and voting by proxy through electronic or mail means. Understand the concept of a proxy and its role in shareholder meetings.
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