Activists Acquire Stock Positions with Intent to Make Changes in the Company

question 1

True/False

Activists acquire stock positions with intent to make changes in the company which will increase the stock price and give them a profit.

---

Definitions:

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Required Return

The minimum expected return by investors for investing in a particular asset, considering the risk involved.

Price Appreciation

An increase in the value of an asset over time, not accounting for dividends or interest.

Rate of Return

Rate of return is the gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.