What is an activist investor?

Also known as activist shareholder, activist investor, or more informal terms such as financial locust, corporate raider, and barbarian. This refers to an investor who actively interferes with the management of a company in which he has a stake. Unlike traditional investors, an activist investor uses his shareholding to put pressure on management, often with a short-term agenda focused on increasing shareholder value.

They often use aggressive strategies, such as seeking publicity or lawsuits, to implement desired changes. This can range from splitting companies to changing strategic directions. Although activists claim to act in the interest of all shareholders, their motivation is often seen as purely financial gain.

This term relates to a specific aspect of the financial world. To better understand this term, it is important to look at the context in which it is used, such as legal provisions, market conditions, or specific business practices.

Version:
26/9/24