Active Vs. Passive Management
Most individual and professional investors attempt to identify the very "best" stocks to own amongst the thousands of publicly traded stocks. Such investors believe that they can "cherry-pick the winners" by carefully analyzing financial data, interviewing company management, and making forecasts. Because their process is more of an art than a science, they typically make only vague references to the specific characteristics that identify their investment style. This type of investing is collectively referred to as Active Management.