Investor Attitudes StudyInvestor Attitudes Study

Presented to:

Prepared by:

October 2006

© Copyright 2006. Opinion Research Corporation. All rights reserved. Founded 1938

Conducted for the NYSE GroupConducted for the NYSE Group

Founded 19382

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)

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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

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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

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Detailed Findings

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Stock Registration Process and Information Dissemination Preferences

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Stock Registration

23%

5%

41%

7%

24%

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?

Investors are generally unaware of details surrounding the stock registration process . . .

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Stock Registration. . . and the information that publicly traded companies receive.

Publicly Traded Companies Receive...

40%

5%

9%

15%

31%

0% 10% 20% 30% 40% 50%

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

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Remember Being Asked to Provide Contact Information to Company

53%

27%

20%

No, was not asked or given form to indicate

choice

Don’t know

Yes, was asked or given form to indicate choice

Half don’t remember if they were asked whether they wanted their contact information provided to companies whose stock they purchased.

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21%

79%

Decision on Whether to Provide Contact Information

Did not provide contact

information

Decision to Provide Information or Not

Why Not Privacy concerns (38%) Avoid solicitations (25%) Security/fraud issues (8%)

WhyWant 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%)

Those who were asked their choice overwhelmingly opted to provide their contact information.

53%

27%

20%

No, was not asked or given form to indicate

choice

Don’t know

Yes, was asked or given form to indicate choice

Provided contact

information

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Receiving Guidance on Decision

The small proportion who remember being given a choice were not given any advice about how to answer the question.

53%

27%

20%

No, was not asked or given

form to indicate choice

Don’t know

Yes, was asked or given form to

indicate choice

29%

71%

Yes

Were You Provided Guidance?

Guidance Given Provide contact information (61%) Do not provide contact information (15%) Don’t know (24%)

No

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Choice If Had Been AskedBy more than a 2-1 margin, those who were not asked their preference would have provided their contact information if they had been asked.

53%

27%

20%

No, was not asked or given form to indicate

choice

Can’t remember

Yes, was asked or given form to

indicate choice

29%

71%

Would not have provided contact

information

Would have provided contact

information

Choice if Had Been Asked(Among ‘No’/Can’t Remember)

Privacy concerns single biggest issue (46%)

Want to receive information single biggest reason (25%)

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Choice If Had Been Asked

Did not provide the information OR would not

have if had been asked

Did provide the information OR would have 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.

27% 73%

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Proxy Voting

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12%

30%

43%

15%

Proxy Voting

Open selected proxy statements and read

through some or most of the content

Open selected proxy statements from a few companies and read some or most of the

content

Open every statement but read little to none of the

content

Open every statement and

read it thoroughly

Open all the statements and

read through some or most of

the content

Throw them out without reading or opening them

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?

Never vote/Don’t recall receiving proxy

statements

Rarely vote

Always vote

Sometimes vote and sometimes not

7%

3% 44%

19%

10%

17%

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Who Votes?

Age is the biggest determinant of the likelihood to cast a proxy vote.

Always/Sometimes Always Sometimes

Total 73% 43% 30%

Men 79% 52% 27%

Women 66% 33% 33%

18-34 61% 24% 37%

35-54 70% 37% 33%

55+ 85% 64% 21%

<$300,000 invested 67% 36% 31%

$300,000+ invested 83% 56% 27%

<20 trades a year 73% 41% 32%

20+ trades a year 76% 53% 23%

Do you vote? Who votes?

12%

30%

43%

15%

Never vote/Don’t recall receiving

proxy statements

Rarely vote

Always vote

Sometimes vote and sometimes not

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Is Proxy Voting Important or Not?

8%

4%

4%

7%

8%

8%

16%

10%

31%

4%

0% 10% 20% 30% 40%

How important is it to you personally?

Most investors say proxy voting is important to them.

57%

27%

16%

10(Very Important to Me)

1(Not at All Important to Me)

6

7

8

9

4

5

2

3

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33%30%

10%

27%

What Happens If You Don’t Vote?

I’m not sure

Your shares are voted by your brokerage firm based

on their preference

Your shares aren’t voted

Your shares are voted automatically by your brokerage firm in accordance with the Board of Directors’ or the company’s recommendations

Few investors know what actually happens if they don’t send in their proxy vote.

In Whose Name is Stock Registered?

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OBO/NOBO Preference

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Importance of Companies Informing You Directly

Importance of Being Informed 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.

54%

31%

14%

8%

3%

3%

7%

9%

12%

14%

10%

30%

3%

0% 10% 20% 30% 40%

10(Very Important to Me)

1(Not at All Important to Me)

6

7

8

9

4

5

2

3

54%Total

47%

61%

65%

49%

46%

49%

58%

% Rating an 8-10

Moderate/conservative investment style

35-54

18-34

Aggressive investment style

55+

Women

Men

54%Total

47%

61%

65%

49%

46%

49%

58%

% Rating an 8-10

Moderate/conservative investment style

35-54

18-34

Aggressive investment style

55+

Women

Men

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64%

36%

OBO/NOBO Preference

Intensity of NOBO Opinion

33% top 2 box 50% top 3 box

Intensity of OBO Opinion 37% top 2 box 55% top 3 box

There are no significant differences

in opinion by any subgroup.

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.

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.

OBO

NOBO

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OBO Preference Shrinks when Price Tag Is Attached

Initial Choice $25 Annual Fee $50 Annual Fee

Preference for OBO status collapses when there is a $25 or $50 price tag to maintain it.

NOBO64%

OBO36%

NOBO86%

OBO14%

NOBO95%

OBO5%

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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 StudyInvestor Attitudes Study

Presented to:

Prepared by:

October 2006

© Copyright 2006. Opinion Research Corporation. All rights reserved. Founded 1938

Conducted for the NYSE GroupConducted for the NYSE Group