A Proxy Fight Involves a Battle by a Shareholder or Group

question 35

True/False

A proxy fight involves a battle by a shareholder or group of shareholders who seek to change the investment policy of the firm. If the proxy group is successful, current management retains control of the firm but the proxy group dictates what investments the firm makes.

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Definitions:

Nonverbal Communication

The process of conveying a message without the use of words; includes gestures, body language, facial expressions, and tone of voice.

Intensity

The degree of strength, force, or energy with which an action is performed or an attribute is possessed.

Rumor Mill

A gossip network that produces mostly false information.

Grapevine

An informal communication network within an organization, spreading information through personal contact and gossip.