Annual General Meeting (AGM)

Annual general meeting is the annual meeting of shareholders. All companies, except the very smallest, are required by law to hold such a get together once a year. For blue chip companies, these meetings are usually no more than a formality where the board of directors will have an opportunity to explain the background to the company's trading record.

So often the most influential shareholders, the institutions (pension funds, unit trust managers etc.), will already have had a dialogue with the company sufficient to put them in the picture as to what's going on. Private shareholders are typically not treated in such a privileged way. For them the annual meeting may be the only realistic chance they get to question the board.

See also:

our guide to stockmarket investment .

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Last Updated: March 2007 © Moneyextra.com

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