A Proxy Is a Document Giving One Party the Authority

question 37

True/False

A proxy is a document giving one party the authority to act for another party, typically the power to vote shares of common stock. A proxy can be an important tool relating to control of the firm.

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Definitions:

Common Stock Account

An equity account that represents the ownership interest held by common shareholders in a corporation, including its value and dividends.

Capital in Excess of Par

The amount by which the proceeds from the issuance of shares exceed the par value of the shares issued; it's often referred to as additional paid-in capital.

Debt-Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity.

Residual Dividend Policy

A strategy where dividends paid to shareholders are set based on the earnings left over after all operational costs and working capital needs are met.