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

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)

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

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

Detailed Findings

Stock Registration Process and Information Dissemination Preferences

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?

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

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

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%)

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%)

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%)

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

Proxy Voting

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

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

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%

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

OBO/NOBO Preference

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)

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.

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

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.

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