Passive investing is an investing strategy that involves speculating on the long term value of stocks and limiting fees by buying and selling as little as possible. The opposite of a passive investor is an active investor. Passive investing is perfect for a young person (or young at heart) who doesn’t want to overcomplicate their investment choices by trying to beat the market. Investing in a diversified portfolio by using ETFs and waiting to collect the interest upon retirement is an example of passive investing.
If a company was an apple pie, a stock would be a slice of the pie. In short, a stock is a slice of a company. Everyone who owns a piece of a company has the right to share a portion of the profits of the company. Read more