How does investor activism impact stock prices?

What is investor activism and how does it work?

Investor activism involves shareholders using their equity stake to influence a company's behavior, often to improve financial performance.

How can investor activism affect stock prices?

Investor activism can lead to stock price increases if the changes proposed are seen as beneficial by the market, or decreases if the activism creates uncertainty.

Can you give me an example of successful investor activism?

Sure! One notable example is Elliott Management's campaign against AT&T, which led to significant changes in strategy and a boost in stock prices.

Are there any risks associated with investor activism?

Yes, risks include potential backlash from management, negative market perception, and the possibility of a failed campaign that could harm stock prices.