1. Jacques Smith holds 1,000 shares of General Electric’s (GE) common stock. The annual stockholder meeting is being held soon, but as a minor shareholder, Jacques doesn’t plan to attend. Jacques did not sell his shares but gave his voting rights to the management group running General Electric (GE). Jacques must have signed a __________ that gives the management group control over his shares.
a) proxy
b) poison pill
c) pre-emptive right
d) corporate charter
2. Jacques also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. The company’s stock currently is valued at $49.00 per share. The company needs to raise new capital to invest in production. The company is looking to issue 5,000 new shares at a price of $39.20 per share. Jacques worries about the value of his investment.
A) Jacques’s current investment in the company is ______________.
B) If the company issues new shares and Jacques makes no additional purchase, Jacques’s investment will be worth ____________.