active ownership

Active ownership is when investors don’t just buy shares of a company and hold them passively; instead, they actively engage with the company’s management and decision-making. This can involve voting on important issues, discussing strategies, and urging changes to improve company performance or align it with sustainable or ethical standards. The goal is to influence the company positively, promote better governance, and ultimately enhance long-term value for shareholders. It’s a hands-on approach that combines financial interest with stewardship, aiming to ensure companies operate responsibly and effectively.