passive investor

passive investor
USA
Defined by the SEC to refer to stockholders beneficially owning more than five percent of the class of subject securities and who can certify that the subject securities were not acquired or held for the purpose of, and do not have the effect of, changing or influencing the control of the issuer of such securities and were not acquired in connection with or as a participant in any transaction having such purpose or effect. Stockholders that are unable to certify to this effect are considered to have a "disqualifying purpose or effect".

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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