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Passive Investing

   Also found in: Wikipedia 0.01 sec.
Passive investing
Putting money into a profitable business opportunity that is deemed passive by the IRS and thus benefits from tax deductions.

Passive Investing

What Does Passive Investing Mean?

An investment strategy that does not include active buying and selling of securities. Passive investors purchase investments with the intention of long-term appreciation and thus have limited portfolio turnover. Index fund investing, in which shares in the fund simply mirror an index, is a form of passive investing.

Investopedia explains Passive Investing

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 do not 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.

Related Terms:
Diversification
Exchange-Traded Fund
Index
Index Fund
Mutual Fund



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