What does "proxy services" mean in the securities market?

Question

What does "proxy services" mean in the securities market?

Answer 1

A shareholder is entitled to attend annual meetings and vote for directors and any other issues that might be up for vote.  Most individual shareholders do not actually attend annual meetings.  They cast their votes through a "proxy."  That is someone who they designate to vote for them.  

Providing material to shareholders and tracking their voting preferences is necessary for the company to meet SEC requirements. A "proxy service" is a company that specializes in doing that.    

If you cast a vote via a proxy and later go to the meeting you can withdraw the proxy and vote in person.