Activist investors can be a shareholder’s best friend

Activist investors are feared by corporate CEOs the world over and have, over the years, built up a reputation as the unruly shake-up masters of Wall Street. While not all activist investors are created equal, a number of them do deploy rather crude and in-your-face strategies, sometimes with the intent of instilling shock and awe.

One rather basic strategy involves the activist building up a meaningful position in the target company’s outstanding float of stock, trying to add their own board members and then (as a meaningful shareholder) attempting to effect predetermined changes in the company. Often, the initial demands or suggested changes to the company are communicated by way of a letter to the company’s management and/or board of directors.

Read the entire article here: https://www.tradingfloor.com/posts/activist-investors-can-be-a-shareholders-best-friend-1936261

 

 

Watch More:

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Serge’s Daily Trading Tips

Subscribe now and get clear, actionable, and relevant trade ideas!

By giving your contact info you agree to receive future emails from The Steady Trader including educational and promotional content. By providing your mobile phone number and clicking on the above “Subscribe” button, you agree to receive automated promotional messages from us via SMS. By opting into our SMS Program, you agree to our Terms and Conditions and Privacy Policy.