Common stockholders may vote by proxy, which is a written authorization by which stockholders assign their voting privilege to someone else, who then votes for his or her choice at the stockholders' meeting. It is a normal practice for management to request proxy statements from shareholders who are not planning to attend the annual meeting.

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What Is a Proxy

Question 39

Multiple Choice

What is a proxy?

A) the selling of a corporation's stock on the public market for the first time
B) another name for an outside director of a corporation
C) the right of a stockholder to purchase new shares of stock before anyone else
D) an advisory position to a corporation's board of directors.
E) a written authorization assigning voting privileges to someone else

Correct Answer: