Active management is the practice of attempting to outperform the market with selection and timing.
Active management is a thoughtful and time-consuming approach to investing and is the opposite of Passive management. Active managers seek to outperform the benchmarks for their portfolio by researching and selecting stocks and other assets based on strategies and analysis methods thought to be superior.
Active managers compete now with passive investment strategies and robo-advising, both of which use their lower fees as the main selling point. Although active managers do have periods where they have historically outperformed their indexes and benchmarks, these numbers take a big hit when fees are factored into the calculations.
Returns in excess of the benchmark are known as “alpha,” and generating alpha is the goal of active management.
The Accumulation/Distribution Indicator follows the trading volume into or out of a security and shows the degree of correlation between this trading volume and the price
Accounts Receivable is part of the Assets on a Balance Sheet, and it details the money due to the company
Depreciation is the accounting practice of recording the decreasing value of a fixed asset, such as a building
The Federal Reserve Bank is a 12-bank system in the United States that plays the role of the country’s central bank
Form 1099-DIV is used to report dividend income and distributions from investments, and is usually filed by the company
Lifetime income annuities provide a guaranteed payout over the life of the annuitant
The Ascending Triangle pattern has a horizontal top line representing a resistance level, and an upward-sloping bottom
Large institutional investors sometimes trade on “Electronic Trading Crossing Networks,” without publicly exposing them
Balanced funds offer a well-diversified investment that includes relatively equal exposure to stocks and bonds
Asset allocation is theoretically the best way to control the return you experience, through diversification