Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Hands-On Investor

What it is:

A hands-on investor has a substantial interest in a company and chooses to take an active role in its management. It is the opposite of a hands-off investor.

How it works (Example):

A hands-on investor could be a large-scale stockholder who also actively participates in how a company is managed. For example, a hands-on investor is delegated responsibility as part of a company's managing directorship. A hands-on investor should not be confused with a hands-off investor, which is an investor with a similar stake who chooses not to take a proactive management role.

Why it Matters:

Major investors are more commonly hands-on than hands-off, having a deep interest in the success of the company as well as disproportionate authority in the decision-making process.