A 'Proxy' Is

question 51

Multiple Choice

A 'proxy' is:

• A)The minimum number of voting members required to attend a meeting for it to be constitutionally valid.
• B)The forum for a meeting of shareholders of a particular class.
• C)The exact number of voting members required to attend a meeting for it to be constitutionally valid.
• D)A representative of someone unable to attend a meeting personally and entitled to vote on their behalf.

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Definitions:

Flotation Costs

The financial outlay a firm encounters when releasing new securities, involving charges for legal matters, underwriting, and registering the issuance.

Issuance

The act of making something available or distributing it officially, commonly used in the context of financial securities being issued to the public.

New Securities

Financial instruments recently issued by a corporation or government entity to raise funds from investors.

Cost of Equity

The theoretical payment a company offers to its shareholders as compensation for the risk they assume by investing their funds.