Asked by Alyamamah Saleh on May 10, 2024
Verified
Which of the following best describes a proxy?
A) a document giving one party the authority to act for another party, including the power to vote
B) a document prohibiting one party from acting for another party, including the power to vote
C) a document laying out the reasons why an investor would want to invest in a particular stock
D) a document that is used to process a stop order on a stock trading on an organized exchange
Proxy
A document authorizing a person to vote on another's behalf in a corporate or other formal meeting setting.
Vote
A formal indication of choice between two or more issues or options, often used in the context of elections or corporate decision-making.
- Understand the concept and importance of a proxy in financial decisions.
Verified Answer
MT
MARION TONI ALAMILLAMay 11, 2024
Final Answer :
A
Explanation :
A proxy is a document that gives one party the authority to act for another party, including the power to vote. It is commonly used in corporate settings, where shareholders may not be able to attend meetings and vote in person.
Learning Objectives
- Understand the concept and importance of a proxy in financial decisions.