Final answer:
An activist investor is a shareholder with a large amount of stock who seeks to influence management decisions, leveraging their voting power to affect company governance and management practices.
Step-by-step explanation:
A shareholder with a large amount of stock who seeks to influence management decisions is known as an activist investor. This type of investor uses their equity stake in a corporation to put pressure on its management. The more stock a shareholder owns, the more votes they are entitled to cast for the company's board of directors, which can amplify their influence on management decisions and policies.Shareholders play a critical role in the governance of a public company by voting for a board of directors. In turn, the board hires top executives to manage the firm on a day-to-day basis. Those shareholders with significant amounts of stock have a greater say in these decisions and can become important players in shaping company strategy, especially if they are activist investors.