Series 10 Exam Question 4: Answer and Explanation

Question: 4

As it relates to securities held in street name, which of the following is true?

I. The corporation will send proxies to the broker dealer.

II. The corporation will not reimburse the broker dealer for forwarding the proxies.

III. The broker dealer may vote blank proxies any way it wishes.

IV. Shareholders who attend the annual meeting will have their proxies voided.

• A. I and III
• B. II and III
• C. I and IV
• D. II and IV

Correct Answer: C

Explanation:

Shareholders who attend the meeting will not be able to vote by proxy but will vote at the meeting. The shareholders must return their proxies 10 days prior to the annual meeting.