What Is a Sponsor?

The term sponsor has many uses in business and finance. Sponsors are most commonly individuals or entities that provide support to another individual or organization. That support can be in the form of active management or in name only.

Here's a closer look at sponsors, why they are important, what investors should know about them, and an example.

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People shaking hands outside of a building. — Image source: Getty Images.

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About the Author

Matt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

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