Activist investing involves acquiring a significant stake in a company’s stock with the goal of influencing its policies, operations, or management.
Activist investors use this ownership position to advocate for changes such as restructuring, mergers, acquisitions, or alterations in corporate governance to enhance shareholder value.
These investors often engage in direct communication with a company’s management or board to bring about strategic shifts or improvements. Activist investing aims to unlock value and boost shareholder returns through proactive involvement in the companies in which they invest.