Saturday, December 21

Tag: activist

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How Activist Investing Operates

The entry of an activist investor is actually the driving force behind change and turnaround in the field of activist investing. An investor using the activist investing strategy looks for poorly managed businesses whose stock prices have recently dropped. Read More: David Birkenshaw After identifying a target, the activist investor acquires a sizable portion of the company's stock, which frequently serves as a warning to the market that changes are imminent. The company's share price may therefore increase in anticipation of a turnaround once word spreads that an activist firm has acquired stock. After making an investment, the activist investor is likely to advocate for changes that they feel will benefit the company's shareholders and raise share prices. ...