CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

Voting rights and proxies are discussed in CFA Institute's Standards of Professional Conduct per Standard III(A) Loyalty, Prudence, and Care. Which of the following facts regarding voting rights and proxies are NOT correct?
A. Established law and regulation make it incumbent on investment managers to be thoroughly familiar with the issues that arise in proxies.
B. Proxies have no value and can be voted on in any manner possible.
C. By exercising their voting rights, shareholders can actively enhance their portfolio values.
Explanation: Proxies have economic value and must be voted in the interest of the ultimate shareowner or plan beneficiary. Failure to exercise these rights may be to the detriment of the stockholder.

User Contributed Comments 2

User Comment
mc25456 proxies have economic value, and must be voted in the interest of the ultimate shareowner or plan beneficiary.
Glenn5431 if the shareholder votes for the wrong proxy, it has no effect on his/her portfolio
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