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Frazier Bjerrum posted an update 2 years ago
What is an Activist? Well, it does not always have to be a shouting political protestor, sometimes being right is just not enough. Being able to find solutions to many different types of problems, conundrums and puzzles at work, is extremely important to virtually any occupation. This is why the job description of an Activist is so incredibly important. In this article we are going to show you exactly what an Activist is.
An Activist is a person who works on issues that affect their field of expertise. Usually they are involved in a variety of different fields such as social justice, environmentalism, pro-business and investor rights. Many times Activists will use a combination of these to express their opinions on a wide range of issues. If a shareholder is being oppressed by a publicly traded company, an activist investor may put pressure on the company to do something about it. Sometimes investors use certain tactics that are considered harassment, such as making rude or intimidating phone calls to a corporation’s stock holders.
Sometimes, Activists are considered Asset Protection Professionals. These are people who protect the assets of other investors. They are usually involved in what is known as asset protection strategies. For example, some activists are advocates of shareholder resolutions or companies that prevent big corporations from taking a certain position on certain issues.
Another type of Activist is the institutional investor. The majority of institutional investors are wealthy people that do not normally invest in small businesses. They are primarily interested in growth and dividends. Because of this, an activist investor may focus on growing the bottom line of a company through business development activities. However, an institutional investor is not necessarily an aggressive individual.
Some investors are Activists but do not spend their time fighting for social causes. These are people who work with a selected few target companies in the same industry. If one of these companies goes under, they don’t do much to affect the economy as a whole. They may, however, have some interesting investor tactics.
Activist groups like Teju Oil, call themselves Social Investment Organizations. They use teju for investment in socially responsible companies that promote sustainable energy, good health and environmental responsibility. Many environmentalists have criticized these types of activists for having a self-serving agenda that does not benefit the general public.
Agency of Activist include professional traders or investment bankers. These individuals are not actively seeking out companies that will go under and suffer large losses. They work with other professional investors to create institutional investment portfolios. An advantage to using the services of an activist shareholder is that the professional can use his influence to pressure stockholders to sell their stocks. This makes the professional a direct link to the company and therefore, direct access to information. This advantage has been taken over by certain firms using non activist shareholder strategies.
An expert can use non activist investors to push a company into bankruptcy court. These individuals are experts in the art of dealing with creditors and have direct access to the CFO and CEO. A lawyer or an executive from a law firm may use a non-activist shareholder strategy as well. These strategies are becoming more common as companies try to cut expenses and use shareholder’s equity to generate cash flow.
Activist investors are also linked to a variety of organizations which help to improve corporate governance. These companies can add members to the BCRS or the Boston Stock Exchange, who are dedicated to improving the way business is conducted in the United States. Activist investors are seen by many as a positive force for improving corporate governance in the United States. While some see these types of investors as a potential detriment to the overall value of a company, many others see them as a necessary component to corporate governance.
Some companies also employ tactics of what is known as “bad press”. This involves the company engaging in PR stunts to create positive PR and raise awareness about their company. Many investors use these tactics to further their own personal interests through what is called “following.” For instance, an investor could start following a company that they feel strongly about in order to gain more exposure for their own business or personally.
The last point that the NYSE and NASDAQ make is that most activist investments include a third point or call to action. The third point is not to simply follow the activist and the company. Rather, the investor needs to be proactive in speaking out against the company and trying to build support for their ideas. They must also develop plans to implement the changes that they would like to see made.