Glossary of Financial & Economic Terms

 

     
   

A

AAA (credit rating)

Abnormal profit

Abnormal returns

Accelerator effect

Accelerated supply

Accord and satisfaction

Accounting cost

Account (Allocated) gold

Account (Certificate) gold

Account (unallocated) gold

Accredited investor

Accrual bond

Active management

Activist shareholder

Adaptive expectations

Advance premium forward

Adverse selection

Aggregate demand

Aggregate expenditure

Aggregate supply

Allotment (financial)

Alpha (investment)

American option

Angel investors

Annual report

Annuity

Anonymous banking

Anticipation (finance)

Antidumping

Arbitrage

Arbitrage pricing theory

Arbitristas

Argentine currency board

Arrovian uncertainty

Art finance

Asian financial crisis

Asian option

Asset pricing

Asset specific required rtn

Asset-based economy

Assignment

At-the-money (moneyness)

Auction call

Audit

Austrian school/economics

Autarky

Automatic stabilizer

Autonomous consumption

Average cost

 

 

Active management

T

 

Portfolio management strategy where the manager makes specific investments with the goal of outperforming a benchmark index. Ideally, the manager selects securities that expose the portfolio to more risk than its index. If the additional risk generates excess return, the active management strategy has succeeded. Managed Funds "are investment Vehicles through which pooled savings of individuals are invested.These managed funds use professional investment managers,or funds managers,who move very large volumes of investment funds around the globe."(Viney,C.,2004,Financial Institutions,Instruments And Markets,McGraw Hill Australia,NSW 2113,p 120)

Active management is the opposite of passive management, where the manager does not seek to outperform his index.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See Also

 

 

 

source: http://en.wikipedia.org/wiki/Active_management

 

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