- Investment Management where the portfolio manager actively makes investment decisions and initiates buying and selling of Securities in an effort to maximize return it is the opposite of passive management where the money manager overseas a fix portfolio structure to match the performance of the overall Market or a pre-selected part of it a strategy called indexing
- the terms active and passive management apply at the level of portfolio management the operative concept is management implying professional management passive investing is something else an individual who buys an index fund is engaging in passive investing as is the investor in a limited partnership deemed Passive by the Internal Revenue Service but should the same individual higher and investment counsel who choose to place his or her client funds in passive Investments the investment counsel would be making investment choices and dust be engaged in active management the passive Investments themselves might or might not be under active management and Index Fund would be under passive management while the passive limited partnership having business activities would be under active management
- Bond terminology meaning a strategy of buying and selling rather than holding to maturity
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