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Mutual Funds Videos 165 videos

Finance: What is Efficient Markets Theory?
141 Views

What is the Efficient Markets Theory? The Efficient Markets Theory says that stocks trade at their fair value all of the time, assuming all informa...

Finance: What is a Fund of Funds?
5 Views

What is a Fund of Funds? A fund of funds is a mutual fund strategy that invests in other funds rather than investing in stocks or bonds. The underl...

Finance: What is the Russell Index?
4 Views

The Russell Index is a series of indices that tracks the progress of stocks in a given basket. Aw. We were hoping it tracked adorable Jack Russell...

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Finance: What is a proxy? 8 Views


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Description:

What is a proxy? Proxy statements are documents that are sent to shareholders of public companies that contain detailed information on agenda subjects that are to be voted upon. Ballots are also included, and copies are also held by and vetted by the SEC. Proxy voting is when shareholders who cannot be physically present at a shareholder meeting authorize a separate party to act as their agent to vote on their behalf.

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Transcript

00:00

Finance a la Shmoop. What is a proxy? Well it's kind of an approx-i-mate. As in, it's

00:09

not exactly the way dogs mate. Not all of them try to text their goodies to each

00:14

other. In the land of Finance, a proxy is simply a substitute.

00:18

Someone's vote, for example, can be given to another party, who then acts on behalf

00:23

of the person, who was going to vote in the first place. But really couldn't care [coffee drive-thru]

00:28

less about the outcome, so she went to Dunkin Donuts instead. That's how

00:31

most votes are taken in public companies. Proxies are sent out to shareholders, who

00:36

then designate their wishes, to then be submitted to an individual, physically

00:40

present at the vote, who then you know votes and that's it.

00:43

We'll leave you with final warning. Beware of any incoming texts you may get

00:48

from a German Shepherd. [Phone with dog text]

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