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Hands-On Investor

What is 'Hands-On Investor'

An investor who holds a large portion of a company's shares and takes an active management role. A hands-on investor can also be called a majority shareholder, or activist shareholder. Such investors see their ownership stake in a firm as the reason to become actively engaged in the firm's decision making process.

Explaining 'Hands-On Investor'

The majority shareholders are usually hands-on investors and have a great influence on the company's management decisions. This may or may not lead to tension with company managers, who typically prefer not to be directed by single shareholders, especially when such shareholders do not have the same level of experience or business acumen as company management.


Further Reading


Selection and support strategies in venture capital financing: high-tech or low-tech, hands-off or hands-on?
www.tandfonline.com [PDF]
… variable (FINSTAG) differentiates early-stage investors (negative values) and late-stage investors (positive values … On the basis of previous research we expect an early stage investor to have … hands-off strategy; increasing the specific knowledge results in less hands-on activity of …

Teaching XBRL to graduate business students: a hands-on approachTeaching XBRL to graduate business students: a hands-on approach
www.jstem.org [PDF]
… variable (FINSTAG) differentiates early-stage investors (negative values) and late-stage investors (positive values … On the basis of previous research we expect an early stage investor to have … hands-off strategy; increasing the specific knowledge results in less hands-on activity of …

Flows: The 'invisible hands' on hedge fund managementFlows: The 'invisible hands' on hedge fund management
papers.ssrn.com [PDF]
… variable (FINSTAG) differentiates early-stage investors (negative values) and late-stage investors (positive values … On the basis of previous research we expect an early stage investor to have … hands-off strategy; increasing the specific knowledge results in less hands-on activity of …

Management turnover through deaths of key executives: Effects on investor wealthManagement turnover through deaths of key executives: Effects on investor wealth
journals.aom.org [PDF]
… variable (FINSTAG) differentiates early-stage investors (negative values) and late-stage investors (positive values … On the basis of previous research we expect an early stage investor to have … hands-off strategy; increasing the specific knowledge results in less hands-on activity of …

A hands-on approach to teaching the financial concept of diversificationA hands-on approach to teaching the financial concept of diversification
www.tandfonline.com [PDF]
… variable (FINSTAG) differentiates early-stage investors (negative values) and late-stage investors (positive values … On the basis of previous research we expect an early stage investor to have … hands-off strategy; increasing the specific knowledge results in less hands-on activity of …

The relevance of accounting and auditing standards in corporate financial reporting in Nigeria; Emphasis on complianceThe relevance of accounting and auditing standards in corporate financial reporting in Nigeria; Emphasis on compliance
papers.ssrn.com [PDF]
… variable (FINSTAG) differentiates early-stage investors (negative values) and late-stage investors (positive values … On the basis of previous research we expect an early stage investor to have … hands-off strategy; increasing the specific knowledge results in less hands-on activity of …

A profile of angel investorsA profile of angel investors
jpe.pm-research.com [PDF]
… variable (FINSTAG) differentiates early-stage investors (negative values) and late-stage investors (positive values … On the basis of previous research we expect an early stage investor to have … hands-off strategy; increasing the specific knowledge results in less hands-on activity of …



Q&A About Hands-On Investor


Is it possible for someone to be both a hands-on investor and have less than 50% ownership in the firm?

Yes, it is possible for someone to be both a hands-on investor and have less than 50% ownership in the firm.

Why would someone want to be an activist shareholder?

Someone may want to become an activist shareholder because they feel that their input will help improve performance of the business.

What does the term majority shareholder mean?

The term majority shareholder means that the individual has more than 50% ownership in the company.

What is a hands-on investor?

A hands-on investor is an investor who holds a large portion of a company's shares and takes an active management role.

How can someone become an activist shareholder?

To become an activist shareholder you need to purchase enough stock so that you are able to influence management decisions within the company.

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