A proxy is a document giving one party the authority to act for another party, typically the power to vote shares of common stock. A proxy can be an important tool relating to control of the firm.

Question

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A proxy can grant the authority to vote shares of common stock, which can be a significant way for shareholders to have a say in the decisions made by the company. As such, it can be an important tool in the control of the firm.

A Proxy Is a Document Giving One Party the Authority