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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.


Definitions:

Federal Deposit Insurance

Federal deposit insurance is a protection scheme that guarantees bank deposits, protecting depositors against bank failures by covering the loss of deposits up to a specified limit.

Main Purpose

The primary aim or objective intended to be achieved by a plan, action, or project.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision; it represents the benefits that could have been received but were given up to take another course of action.

Medium Of Exchange

A device or mechanism designed to assist in the buying, selling, or exchanging of products among individuals or groups.

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