- s) attempt to beat the market with various investing strategies and buying/selling decisions of a portfolio's securities.
Also known as "passive strategy," "passive investing" or "index investing."
Followers of passive management believe in the efficient market hypothesis. It states that at all times markets incorporate and reflect all information, rendering individual stock picking futile. As a result, the best investing strategy is to invest in index funds, which, historically, have outperformed the majority of actively managed funds.
Investment dictionary. Academic. 2012.
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