When you buy a stock you’re not allowed to have any say in company matters whatsoever (Just Kidding). When you buy stocks you actually have a lot of say in company matters. You get to vote on something called the BOD (Board of Directors). The BOD gets to decide who the CEO will be and have the opportunity to hire top company managers. The more stocks you own the more you get to vote, so a person with one stock gets one vote, while a person with 500 sticks gets 500 votes. Every year all shareholders in a business are sent something called a proxy (although sometimes it’s sent to you online). Usually this proxy comes with an annual report and information on the Annual Shareholders Meeting, a meeting where the shareholders and people like the CEO meet to discuss important company events and communicate accomplishments and challenges from the last year. It’s kind of like the annual report but in person. If you live anywhere near where this is held you should definitely consider going. Anyways, when you get your proxy ballot you get a list of about ten people who are running for the BOD. You then get the choice to vote for them, against them, or abstain your vote (Pretty much means you chose not to vote). Most people vote for everyone on the list but some do a lot of research to decide who will benefit the company and who won’t.
Yesterday I got my proxy ballot from Mattel so I thought it would be the perfect the time to write about Proxy’s.
It looks kind of boring but some proxy’s look like this.
Also kind of boring (I never said they were supposed to be interesting).
That’s all for now, Ben