Posted in Finance, Accounting and Economics Terms, Total Reads: 323
Definition: Activist Investor
An activist shareholder is an individual or group who purchases a high stake in a public companyvia equity shares. He may do so for reasons like increase of shareholder value through changes in corporate policy, financing structure, disinvestment from particular countries, adoption of environmentally friendly policies or many others. Even a stake small like less than 10% of outstanding shares would be enough to launch a successful campaign compared to a full takeover which is very difficult to execute.