Definition: is an individual that owns a portion of a company’s shares or stock that actively takes part in the daily management of the company. Such investors usually act as executives and are a part of the firm’s board of directors, while also being liable for its decisions. An entrepreneur can choose to be an active investor either if he has the expertise necessary to manage a company efficiently, or if he doesn’t want to trust directors with his funds.
In a Sentence:
If I ever decide to join your enterprise, I’ll become an active investor. I can’t stand the thought of not being able to control how my money is used.
When you’re an active investor in a company, you can enjoy the advantage of being aware of its operations on a daily basis. Otherwise, you’ll be limited to finding out crucial information during annual meetings.
Synonyms and related words: active management, passive investor, investor, lead investor, strategic investor