Question

Larry Nelson holds 1,000 shares of General Electric's (GE) common stock. The annual stockholder meeting is being held soon, but as a minor shareholder, Larry doesn't plan to attend. Larry did not sell his shares but gave his voting rights to the management group running General Electric (GE). Larry must have signed a ___________ that gives the management group control over his shares.

A. Poison Pill,
B. Proxy,
C. Preemptive Right,
D. Corporate Charter

Answer 1

The correct answer is B that is Proxy.

Step-by-step explanation:

Proxy voting is the term which is described as the situation where the person holding some shares of the firm, does not sell the shares and gave the voting right to someone on behalf of his or her shareholding.

In this scenario, Larry does not want to sell the shares and gave the voting rights to the management. So, he must signed a proxy which gives the management control over the shares.Answer: