An individual or entity attempting to acquire enough equity in a target firm to assume a controlling interest, generally through a hostile takeover bid. Such an interest allows the raider to replace the existing management with his own representatives, completing the takeover. A raider would typically target a firm with undervalued assets, which would be relatively inexpensive to take over. Once the raider has accumulated 5% of the shares in a firm, he/she must report this fact to the SEC and the target firm.