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Glossary · PSX term

Strategic investor.

A strategic investor holds a large, long-term stake for control or business reasons, not quick trading.

Definition

Their shares, like those of founders or government, are usually excluded from free float because they are not available to the market. Their actions, such as selling down a stake, can move the share price.

Worked example

A government holding 60% of a privatised company is a strategic investor whose shares sit outside free float.

Related on PSX Clarity

Term
Free float
Term
Free-float percentage
Term
Secondary offering

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