UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-PX
ANNUAL REPORT OF PROXY VOTING RECORD OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number
811-02365
Prospect Street
®
Income Shares Inc.
(Exact name of registrant as specified in charter)
Two Galleria Tower
13455 Noel Road, Suite 800
Dallas, Texas 75240
(Address of principal executive offices) (Zip code)
James D. Dondero
Highland Capital Management, L.P.
Two Galleria Tower
13455 Noel Road, Suite 800
Dallas, Texas 75240
(Name and address of agent for service)
Registrant’s telephone number, including area code:
877-665-1287
Date of fiscal year end:
December 31
Date of reporting period:
July 1, 2007 — June 30, 2008
Form N-PX is to be used by a registered management investment company, other than a small
business investment company registered on Form N-5 (§§ 239.24 and 274.5 of this chapter),
to file reports with the Commission, not later than August 31 of each year, containing the
registrant’s proxy voting record for the most recent twelve-month period ended June 30,
pursuant to section 30 of the Investment Company Act of 1940 and rule 30b1-4 thereunder
(17 CFR 270.30b1-4). The Commission may use the information provided on Form N-PX in its
regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-PX, and the
Commission will make this information public. A registrant is not required to respond to
the collection of information contained in Form N-PX unless the Form displays a currently
valid Office of Management and Budget (“OMB”) control number. Please direct comments
concerning the accuracy of the information collection burden estimate and any suggestions
for reducing the burden to the Secretary, Securities and Exchange Commission, 100 F
Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. § 3507.