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What is the definition of Active Investor as related to a Start-Up Company?


I'm trying to find -

* a reliable definition and
* ideally a referenced source

on what constitutes an "active" investor as related
to a start-up company, not as related to trading stocks.

Please help.

come on, are you kidding me?
by the nature of the question it sounds like an intro to business class subject, if you can't figure this out you should drop out of school.

because i am magnanimous here you go:

an "active" investor "actively" participates in running the business. if you start a business (say an ice cream shop) and put your money in it, are there every day, run it, manage it, grow it you are an active investor. now buying stock in the market place is active investing too because you have voting powers over the company although you don't actively participate in the operations of the company.

now contrast that to a passive investor: like a limited partnership (read s-corp or llc). usually 98-99% of the investment comes from the "limited partners" who have no power/control over the company they invested in. they just participate in the cash flow of the company and depletion/depreciation.

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