A proxy statement is an official document that a company sends to shareholders before a shareholder meeting, explaining items up for a vote. It includes information about proposed board members, executive compensation, and other major decisions requiring shareholder approval. The document also explains how shareholders can vote and the company's recommendations on each issue. Shareholders who cannot attend the meeting in person can vote by proxy using this information.
PublicCorp sends a proxy statement to all shareholders two weeks before its annual meeting. The statement explains that shareholders will vote on four new board candidates, a proposal to increase the share count, and executive compensation packages. You review the document, disagree with one candidate, and vote against that person while voting yes on the others. Your votes are counted even though you did not attend the meeting in person.
Greater Fool is a free Chrome extension that explains terms like this in place. Highlight a word on any page, click Explain, keep reading.
Add to Chrome (free)