1. Jacques Smith holds 1,000 shares of General Electrics (GE) common stock. The annual stockholder meeting is being held soon, but as a minor shareholder, Jacques doesnt 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) preemptive 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 companys 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) Jacquess current investment in the company is ______________.

B) If the company issues new shares and Jacques makes no additional purchase, Jacquess investment will be worth ____________.