A shareholder can transfer the right to vote to a second party, by means of an instrument known as _____.

Question

Quizplus · Accepted Answer

The instrument that allows a shareholder to transfer the right to vote to a second party is known as a proxy. Therefore, option E is the correct answer.

Option A, arbitrage, refers to the practice of taking advantage of price differences between markets. Option B, allotment, refers to the process of allocating shares during an IPO. Option C, consortium, refers to a group of businesses or individuals who work together to achieve a common goal. Option D, rationing, is a process of restricting the consumption of a particular resource. None of these options are related to the transfer of voting rights.

A Shareholder Can Transfer the Right to Vote to a Second