0. Investor Attitudes Study
Conducted for the NYSE Group
Presented to:
© Copyright Opinion Research Corporation. All rights reserved.
Founded 1938
Prepared by:
October 2006

1. Methodology Conducted from March 16 – 22, 2006
579 interviews completed online
Investors represented a mix by:
Gender
Age
Value of investments
Number of trades in past 12 months
Type of financial institutions used
Investment style (rating on 10-point scale; conservative to aggressive)

2. Key topic areas included in the survey:
Understanding of the stock registration process
Recall of last account opening process and actions concerning the provision of investor contact information
Actions taken when proxy statements received
Proxy voting behaviors and attitudes
Attitudes toward OBO / NOBO issues
Understanding of OBO / NOBO issues
Reaction toward a fee for maintaining OBO status

3. Key Findings
There is a great deal of confusion about the security registration and proxy voting process
Almost two-thirds of investors believe stocks are either registered in their name or said they weren’t sure how they were registered
Only one in four are aware that if they don’t vote their proxy, their shares are voted by the brokerage firm in accordance with the wishes of the Board of Directors
Few investors recall being asked if they wished their name to be provided to publicly traded companies as part of the account opening process
NOBO status is clearly preferred by investors

4. Detailed Findings

5. Stock Registration Process and Information Dissemination Preferences

6. Stock Registration
Investors are generally unaware of details surrounding the stock registration process . . .
Always your name – you have no choice
Your name – if you choose it to be this way
Not really sure
Always the name of your brokerage firm – you have no choice
The name of your brokerage firm – if you choose it to be this way
In Whose Name is Stock Registered?

7. Publicly Traded Companies Receive...
Stock Registration
. . . and the information that publicly traded companies receive.
Publicly Traded Companies Receive...
Publicly traded companies automatically receive the names & addresses of all individuals purchasing their stock at part of the normal stock transaction process
Publicly traded companies receive the names & addresses of the institution in whose name the stock is registered
Publicly traded companies receive the names & addresses of individuals purchasing their stock ONLY
Publicly traded companies can receive the names of all individual investors who purchased their stock ONLY by applying
I'm not really sure which of these is the most accurate

8. Remember Being Asked to Provide Contact Information to Company
Half don’t remember if they were asked whether they wanted their contact information provided to companies whose stock they purchased.
No, was not asked or given form to indicate choice
Don’t know
Yes, was asked or given form to indicate choice

9. Decision on Whether to Provide Contact Information
Those who were asked their choice overwhelmingly opted to provide their contact information.
Decision to Provide Information or Not
Provided contact information
Yes, was asked or given form to indicate choice
Don’t know
Did not provide contact information
No, was not asked or given form to indicate choice
Why
Want to receive information/keep up to date/informed (24%)
Thought it was a good idea (11%)
Gives me more control/ownership (9%)
Being upfront/have nothing to hide/no reason not to provide it (8%)
For proxy voting (8%)
Why Not
Privacy concerns (38%)
Avoid solicitations (25%)
Security/fraud issues (8%)

10. Receiving Guidance on Decision
The small proportion who remember being given a choice were not given any advice about how to answer the question.
Were You Provided Guidance?
Yes, was asked or given form to indicate choice No
Don’t know
Yes
No, was not asked or given form to indicate choice
Guidance Given
Provide contact information (61%)
Do not provide contact information (15%)
Don’t know (24%)

11. Choice If Had Been Asked
By more than a 2-1 margin, those who were not asked their preference would have provided their contact information if they had been asked.
Choice if Had Been Asked
(Among ‘No’/Can’t Remember)
Would have provided contact information
Can’t remember
Yes, was asked or given form to indicate choice
No, was not asked or given form to indicate choice
Would not have provided contact information
Want to receive information single biggest reason (25%)
Privacy concerns single biggest issue (46%)

12. Choice If Had Been Asked
In total, nearly three in four investors either provided their contact information or would have if they had been asked their preference.
Did not provide the information OR would not have if had been asked
Did provide the information OR would have if had been asked

13. Proxy Voting

14. Proxy Voting
Proxy statements are read to various degrees. Most investors vote at least part of the time.
What do you do when you receive them?
Do you vote?
Throw them out without reading or opening them
Open every statement and read it thoroughly
Never vote/Don’t recall receiving proxy statements
Open every statement but read little to none of the content
Always vote
Rarely vote
Open selected proxy statements from a few companies and read some or most of the content
Open all the statements and read through some or most of the content
Open selected proxy statements and read through some or most of the content
Sometimes vote and sometimes not

15. Who Votes?
Age is the biggest determinant of the likelihood to cast a proxy vote.
Do you vote?
Who votes?
Always/ Sometimes
Always
Sometimes
Total
73%
43%
30%
Men
79%
52%
27%
Women
66%
33%
18-34
61%
24%
37%
35-54
70%
55+
85%
64%
21%
<$300,000 invested
67%
36%
31%
$300,000+ invested
83%
56%
<20 trades a year
41%
32%
20+ trades a year
76%
53%
23%
Never vote/Don’t recall receiving proxy statements
Always vote
Rarely vote
Sometimes vote and sometimes not

16. Is Proxy Voting Important or Not?
Most investors say proxy voting is important to them.
How important is it to you personally?
10 (Very Important to Me)
1 (Not at All Important to Me) 6 7 8 9 4 5 2 3
57%
27%
16%

17. What Happens If You Don’t Vote?
Few investors know what actually happens if they don’t send in their proxy vote.
In Whose Name is Stock Registered?
Your shares aren’t voted
I’m not sure
Your shares are voted by your brokerage firm based on their preference
Your shares are voted automatically by your brokerage firm in accordance with the Board of Directors’ or the company’s recommendations

18. OBO/NOBO Preference

19. Importance of Companies Informing You Directly
More than half of investors say it is important to them that they be informed directly, not via a third party, about matters deemed important to shareholders.
Importance of Being Informed Directly
10 (Very Important to Me) 9
54% 8 7 6
31% 5 4 3 2
14%
1 (Not at All Important to Me)

20. Intensity of OBO Opinion Intensity of NOBO Opinion
OBO/NOBO Preference
Given a comprehensive explanation of the difference between OBO and NOBO status, by nearly a 2-1 margin investors choose NOBO status. Those who pick OBO and NOBO are about equally strong in their opinions.
Intensity of OBO Opinion
Intensity of NOBO Opinion
37% top 2 box
55% top 3 box
33% top 2 box
50% top 3 box
OBO
NOBO
Nearly half (44%) aren’t sure whether most of their accounts are OBO or NOBO; 37% think most are NOBO, while 18% think most are OBO.
There are no significant differences in opinion by any subgroup.

21. OBO Preference Shrinks when Price Tag Is Attached
Preference for OBO status collapses when there is a $25 or $50 price tag to maintain it.
Initial Choice
$25 Annual Fee
$50 Annual Fee

22. Summary
There is a great deal of confusion about the security registration and proxy voting process.
Investor education is likely required to fully address the issue
Few investors recall being asked if they wished their name to be provided to publicly traded companies as part of the account opening process.
The account opening event involves many activities. OBO/NOBO status issues do not standout as part of the process. This may also need to be addressed.
NOBO status is clearly preferred by investors.
Most investors express a clear preference for knowledge. This should be considered in decisions made.

23. Investor Attitudes Study
Conducted for the NYSE Group
Presented to:
© Copyright Opinion Research Corporation. All rights reserved.
Founded 1938
Prepared by:
October 2006