proxy
noun
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Definition of proxy
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Synonyms for proxy
Synonyms
agent, assignee, attorney, commissary, delegate, deputy, envoy, factor, minister, procurator, rep, representative
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Examples of proxy in a Sentence
Recent Examples on the Web
Students were plucked from across the Shenandoah Valley, from schools with large populations of children who receive free or reduced prices on school meals — a proxy for need. — Washington Post, "James Madison University set out to help 35 middle schoolers become the first in their families to attend college. Would they succeed?," 31 Aug. 2019 In a separate report Thursday, the Labor Department said the number of Americans filing claims for unemployment benefits, seen as a good proxy for layoffs, rose by 4,000 last week to a still-low 215,000. — Martin Crutsinger, USA TODAY, "Thanks to consumers, the US economy is still rising steadily," 29 Aug. 2019 In a separate report Thursday, the Labor Department said that the number of Americans filing claims for unemployment benefits, seen as a good proxy for layoffs, rose by 4,000 last week to a still-low 215,000. — CBS News, "U.S. economy slowed slightly in second quarter," 29 Aug. 2019 Icahn's other potential nominees are Icahn Capital portfolio manager Nicholas Graziano, Icahn Enterprises general counsel Andrew Langham, and Alan LeFevre, who was previously named to a board seat at Herbalife after Icahn won a proxy bid there. — Jordan Blum, Houston Chronicle, "Icahn attacks Oxy over potential board additions," 29 Aug. 2019 Iran’s network of proxies across the Middle East include thousands of Shiite fighters in Syria that have shored up the regime of Bashar al-Assad. — NBC News, "Israel's shadow war with Iran risks triggering wider conflict, analysts say," 29 Aug. 2019 Dennis Kwok, a pro-democracy politician and barrister who represents the legal constituency in LegCo, notes that particular controversy surrounds elections within professional bodies that allow for proxy voting. — The Economist, "China is using Kublai Khan’s methods to quell protests in Hong Kong," 29 Aug. 2019 Instead, researchers have tried to probe the past by looking at sedimentary proxies: iron, carbon or sulfur compounds in geological strata with properties that can be measured and put into models to infer ancient oxygen levels. — Quanta Magazine, "Rapid Oxygen Changes Fueled an Explosion in Ancient Animal Diversity," 27 Aug. 2019 Bili is too confused, and too sad, to play proxy in some civilizational face-off. — Zoë Hu, The New Republic, "Crazy Sad Asians," 27 Aug. 2019These example sentences are selected automatically from various online news sources to reflect current usage of the word 'proxy.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
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More Definitions for proxy
proxy
nounFinancial Definition of proxy
What It Is
A proxy is the common name for the Securities and Exchange Commission (SEC) Form 14-A (the "proxy statement"), which is the document containing the voting ballot and material information related to the propositions to be determined.
How It Works
Shareholders in corporations have the right to vote on matters such as electing directors, selecting an auditor, approving a merger, or selling the company. The SEC requires public companies to file proxy statements prior to the companies' annual shareholder meetings; the objective is to inform shareholders of the meeting, what matters are up for a vote, and instructions for voting. The proxy statement contains background information so that shareholders can make informed voting decisions. Proxy statements often reveal the relationships between board members and management (i.e., family ties, prior professional relationships, etc.)
Shareholders can vote by mailing their ballots; they don't have to attend the company's annual meeting or vote in person. In many cases, shareholders don't actually receive a proxy statement in the mail if they own shares indirectly, as is the case with mutual funds (in that situation, shareholders own shares of the mutual fund rather than shares of the underlying assets).
Investors who hold shares in street name (that is, the shares are registered to the investor's brokerage firm rather than in his or her own name) might also not receive proxies. In these cases, the fund manager or brokerage firm is the actual shareholder in the eyes of the company, and they receive the proxy statement and can vote the shares. These representatives are responsible for voting the shares in the best interest of their investors, and in many cases, a mutual fund is a sizeable shareholder--its vote may have a significant impact on the company.
Why It Matters
One of the most basic rights of shareholders is the right to vote. The proxy and the voting process it is associated with are manifestations of this most fundamental right. Shareholders are the owners of a company, and they can use their votes to influence a company, sometimes against management's wishes. These are called callable preferred stock fights.
One type of information that is often of particular interest is management compensation data. Companies must disclose how much particular executives are making and how those executives are compensated. For example, a proxy may disclose that a CEO is bonused a certain amount when the company achieves a certain percentage of customer growth; this is helpful to shareholders because it might explain why the CEO is focused on advertising campaigns rather than infrastructure or product development.
Source: Investing Answers
proxy
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English Language Learners Definition of proxy
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Kids Definition of proxy
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