Activist investors seek the support of other stockholders to bring about change in a firm, and propose changes to improve the financial performance of the firm to the Board of Directors. They do not necessarily have to buy a controlling interest in a firm to exact change. Therefore, the correct choice is D, which includes both A and B.

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Activist Investors

Question 184

Multiple Choice

Activist investors:

A) Seek the support of other stockholder to bring about change in a firm.
B) Propose changes to improve the financial performance of the firm to the Board of Directors
C) Buy a controlling interest in a firm to exact change
D) A & B only
E) B & C only

Correct Answer: