Which of the following does not explain why activist investors have more power over a firm than individual investors?
A) Activist investors can buy or sell large numbers of shares at once.
B) Activist investors can exercise block-voting rights over individual investors.
C) Activist investors can demand seats on company boards.
D) Activist investors have more legitimacy than individual investors.

Question

Quizplus · Accepted Answer

Both individual and activist investors can claim the same legitimacy as stockholders. However, shareholder activists have much more power over a firm for various reasons.

Which of the Following Does Not Explain Why Activist Investors