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What exactly is an activist investor? An activist investor, also known as a DBA, is a private shareholder that attempts to use his/her shares of stock in a given company to get a certain goal accomplished. Activist shareholders don't necessarily have to own a significant share of a given company to use this method.There are many reasons why some investors choose to be more aggressive in their pursuit of investment objectives. One of the main reasons is because ordinary investors (which we call institutional investors) aren't as vocal and well-educated about their buying and selling decisions. Many of them just sit back and let companies do the walking on their investments.Another reason is that the banking industry isn't really all that friendly to shareholder activists. Banks tend to be very conservative by nature and are leery of risks that come from activist investing. As Agency , many banks will not work with investors who are advocating political action. As a result of this, you will typically only see moderate amounts of investor activism on a variety of public companies.Agency , however, have no fear of going beyond the usual. They are much more likely to bring pressure to bear on publicly traded companies that they feel aren't acting appropriately (e.g., pushing for the company to go beyond what the shareholders voted for to get themselves a higher share price). Activists can and often do bring about a significant amount of change. Sometimes, Agency means the company makes changes that go beyond what the shareholders would have liked.In order to qualify as an activist investor, one needs to understand the difference between regular or institutional investor activism and what is sometimes called teju activism. Simply put, term activism is when an activist wants to make a profit from his or her investments. Usually, this involves trying to take control of a company or invest in it via proxy or informal resolutions. Therefore, the activists take advantage of an obscure but powerful privilege that the rest of us don't have: the right to invest in whatever they want.As a result, an activist can use the leverage that comes from their socially active status to make changes on a global scale. The leverage comes from using what is known as social media. Social media allows activists to go beyond their own group of friends and supporters and connect with others who have similar beliefs and who might be able to help. It also gives activists the chance to expand their sphere of influence by connecting with individuals outside of their own networks. In some cases, activists go beyond using social media to go beyond their own networks and to start influencing people outside of their own network.Unfortunately, sometimes activists use the privilege of being social to do harm. Sometimes Agency use the privilege of being politically active to mismanage funds meant for supporting specific projects or individuals. Other times, activists misuse the privilege of being politically active and use the leverage of their membership in groups to go after individuals they believe are committing crimes. All of this adds up to one thing: privilege.As the saying goes, it doesn't matter what you do in life, if you do it for the wrong reasons, it doesn't matter. However, there is an exception to this rule. Sometimes, it matters more what you aren't doing than what you are doing. Unfortunately, Agency abuse their privilege through the use of social media and informal networking to spread unfounded threats against individuals they deem to be enemies of the state or religion or group. This can range from real life threats to online threats that end up having real life repercussions, such as threats to someone's job or family. If an activist is found guilty of such behavior, not only will their career be jeopardized but they may even lose their right to vote.
