Which of the Following Is True About Shareholder Proposals and Eligibility

question 32

Multiple Choice

Which of the following is true about shareholder proposals and eligibility of shareholders to get their proposals included by a corporation in its proxy statement?

• A)A shareholder must own at least 0.5 percent of the securities to be voted at the shareholders' meeting.
• B)An eligible shareholder may submit only one proposal per shareholder meeting.
• C)The shareholder proposal and its supporting statement may not exceed 1500 words.
• D)A shareholder must own at least $1,000 of the securities to be voted at the shareholders' meeting.

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Definitions:

Black-Scholes Formula

A mathematical model developed for pricing options, estimating the variation over time of financial instruments.

Risk-free Interest Rate

The return on investment with no risk of financial loss, typically represented by government bonds.

Stock Price Volatility

This term describes the degree of variation of a trading price series over time as measured by the standard deviation of returns.

Intrinsic Value

The inherent worth of a financial asset, determined through fundamental analysis without reference to its market value.