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 they have an interest. Unlike traditional investors, an activist investor uses their shareholding to put pressure on management, often with a short-term agenda aimed at increasing shareholder value.

They often employ aggressive strategies, such as seeking publicity or lawsuits, to implement desired changes. This can range from splitting up companies to changing strategic directions. Although activists claim to act in the interests of all shareholders, their motivation is often viewed 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 corporate practices.