A Proxy Is

question 63

Multiple Choice

A proxy is:

• A)A legal document that gives a designated agent of a stockholder the power to vote the stock.
• B)A contractual commitment by an investor to purchase unissued shares of stock.
• C)An amount of assets defined by state law that stockholders must invest and leave invested in a corporation.
• D)The right of common stockholders to protect their proportionate interests in a corporation by having the first opportunity to purchase additional shares of common stock issued by the corporation.
• E)An arbitrary amount assigned to no-par stock by the corporation's board of directors.

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Definitions:

Transitive Preferences

A concept in decision theory where if a person prefers option A over B and B over C, then the person also prefers A over C.

Transitive Indifference

Transitive indifference refers to a situation in consumer preference theory where if a consumer is indifferent between goods A and B and also between goods B and C, then the consumer is equally indifferent between goods A and C.

Strict Preference

An economic term indicating a consumer's stronger liking for one option over another, with no indifference between the two.

Convex Preferences

In consumer theory, a situation where the consumer prefers an average of two goods or bundles to either one of the extremes, indicating a desire for diversified choices.