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SEC Form PRE 14A, also known as a preliminary proxy statement, is a form that must be filed with the Securities and Exchange Commission (SEC) by or on behalf of a registrant when a shareholder vote is required on an issue not related to a contested matter or merger/acquisition.
A proxy statement is a document containing the information the Securities and Exchange Commission (SEC) requires companies to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual or special stockholder meeting.
Key Takeaways. A proxy is an agent legally authorized to act on behalf of another party. The proxy may also allow an investor to vote without being physically present at the annual shareholder's meeting.
SEC Form DEF 14A, also known as a "definitive proxy statement," is a required filing when a shareholder vote is required. The Form DEF 14A outlines the list of items up for vote by shareholders, such as the hiring of new directors or other business decisions.
The proxy statement provides details about management, their experience and qualifications.The proxy statement can reveal potential conflicts of interests, such as related-party transactions that may not be beneficial to the company. Another thing to look for are company loans advanced to senior executives.