Shareholder activism is most commonly practiced by: A. customers. B. chief executive officers. C. institutional investors. D. managers. E. the government.
Question
Shareholder activism is most commonly practiced by: A. customers. B. chief executive officers. C. institutional investors. D. managers. E. the government.
Solution
The most common practitioners of shareholder activism are C. institutional investors. These are organizations or groups that own large numbers of a company's shares and can use their stake to influence the company's decisions. They may push for changes in the company's operations, financial practices, or even its leadership. This can be done through various means, such as proposing new directors or policies, or voting on existing ones.
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