See: Proxy Fight.
Most people use stocks to make money. Buy low, sell high, and all that. It's easy to forget that those shares actually mean something. They represent tiny bits of ownership in a company.
When you buy stock, you also get voting rights in the company (most stock works like that; it depends on the kind of stock, but generally speaking, you get voting rights). If someone wants you to vote for something at a shareholders' meeting, details on that topic will be included in proxy materials. These documents lay out the proposals on the docket that shareholders will vote on. Usually, these votes are rather pedestrian. Sometimes, though, big votes come up. Merger deals. Controversial board members. Changes in compensation policy. The proxy materials will describe the planned votes, as detailed by SEC regulations.
Related or Semi-related Video
Finance: What is a proxy?8 Views
Finance a la Shmoop. What is a proxy? Well it's kind of an approx-i-mate. As in, it's
not exactly the way dogs mate. Not all of them try to text their goodies to each
other. In the land of Finance, a proxy is simply a substitute.
Someone's vote, for example, can be given to another party, who then acts on behalf
of the person, who was going to vote in the first place. But really couldn't care [coffee drive-thru]
less about the outcome, so she went to Dunkin Donuts instead. That's how
most votes are taken in public companies. Proxies are sent out to shareholders, who
then designate their wishes, to then be submitted to an individual, physically
present at the vote, who then you know votes and that's it.
We'll leave you with final warning. Beware of any incoming texts you may get
from a German Shepherd. [Phone with dog text]
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