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Active market |
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Active marketA loose term denoting that there is a high degree of liquidity in a stock market, which in turn usually means that bid-offer spreads are narrow.Similar MatchesInactive assetInactive assetAsset not used in a productive manner at all times. Active managementActive managementSee 'active fund'. ActiveActiveA market in which there is frequent trading. Active fundActive fundA fund in which the objective is to outperform the market average by actively seeking out stocks that will provide superior total return. Fund managers have access to extensive research and analysis to help them make the right choices, and one of the consequences of this effort is that the management charges passed on to investors in the fund tend to be high.Contrast this with passive funds like tracker and index funds, which do not try to beat the index, but simply aim to match it by investing in companies precisely in accordance with the constituents of an index. Since this is a mechanical process, the managers of the fund have far lower expenses, and the charges to investors are lower than for active funds (which of course helps fund performance.)Advocates of passive funds point to the fact that many actively managed funds fail to match the index. Advocates of active funds argue that the more investors pile into index funds, the more opportunity for active investment. Plus the only way to better the index is to manage actively. Active fund managementActive fund managementAn investment approach that purposely shifts funds either between asset classes (asset allocation) or between individual securities (security selection). Further SuggestionsInactive postMost active list Active Server Pages Transactive ads Active account Inactive stock or bond Active Management Active Risk Active income Active bond crowd |
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