Also known as a buy-and-hold or couch potato strategy, passive investing requires good initial research, patience and a well diversified portfolio.
Unlike active investors, passive investors buy a security and typically don't actively attempt to profit from short-term price fluctuations. Passive investors instead rely on their belief that in the long term the investment will be profitable.
Investment dictionary. Academic. 2012.
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passive investing — Putting money into a profitable business opportunity that is deemed passive by the IRS and thus benefits from tax deductions. Bloomberg Financial Dictionary … Financial and business terms
Passive management — (also called passive investing) is a financial strategy in which a fund manager makes as few portfolio decisions as possible, in order to minimize transaction costs, including the incidence of capital gains tax. One popular method is to mimic the … Wikipedia
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passive activity loss — ( PAL) A loss incurred in participating in passive investing. Bloomberg Financial Dictionary … Financial and business terms
Passive income — is a rent received on a regular basis, with little effort required to maintain it. It is advocated by some authors, especially by Robert Kiyosaki.Some examples of passive income are: * Repeated regular income, earned by a sales person, generated… … Wikipedia
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Alternative beta — refers to alternative systematic risks in the context of Harry Markowitz’ modern portfolio theory. Systematic risks are risks that cannot be diversified away and are compensated through risk premia (the expected rate of return above the risk free … Wikipedia