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Chapter 21: Proxy Statements Guide Quiz
Test your knowledge of the proxy statements chapter material!
1 / 10
When minority shareholders file a proxy statement seeking to oust members of the company board, this is called:
Answer can be found on page 231.
Correct!
2 / 10
True or false: Companies are supposed to explain why executives got paid what they did in proxy statements.
Read more on page 234.
Correct! You’ll find this explanation in the Compensation Discussion and Analysis section, though it can be difficult to decipher.
3 / 10
True or false: Proxy statements are essentially an open letter to shareholders.
Proxy statements provide information that help investors make an informed choice. Read more on page 230.
Correct! Proxy statements provide information that help investors make an informed choice.
4 / 10
Who generally files a company’s proxy statement?
5 / 10
Where can proxy statements be found?
Correct! Proxy statements can always be found on the SEC’s EDGAR database, and you may also be able to find them on corporate websites or investor-relations pages too.
6 / 10
If information is missing from the proxy statement, where should you look?
Answer can be found on page 238.
Correct! Technically, most of the information commonly found in the proxy can appear in Section III of the 10-K.
7 / 10
What story might you get from reading proxy statement documents?
Answer can be found on pages 236-237.
Correct! There are all sorts of things you can learn from reading proxy statements. Be sure to read the footnotes too!
8 / 10
The reported values of Stock-Based Compensation are:
Since the true value will fluctuate over time with a company’s stock price, these values are estimated. Read more on page 232.
Correct! Since the true value will fluctuate over time with a company’s stock price, these values are estimated.
9 / 10
What is a company’s final proxy statement filed as in EDGAR?
Correct! This is also referred to as a “definitive” proxy.
10 / 10
Which organization is a good resource if you want an investor’s perspective on pay practices?
Answer can be found on page 237.
Your score is
The average score is 85%
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