Passive investor

passive investor
investor who lends money but does not actively contribute to management. For example, a limited partnership in a real estate development project.

Passive Investor
Definition: Person who invests money but is not active in the business.

passive investor An investor who does not play an active role in the daily activities of a particular business. passive loss The case in which passive income is negative.

In general, clients who resort to intermediaries usually give an unconditional authorization for the management of the assets entrusted (passive investors).

Frequently, however, the entrepreneur will organize the business in such a way as to share the risks with others, either by borrowing part of the initial financing from banks or from wealthy passive investors or by selling bonds.

In the former case, SWFs regularly describe themselves as passive investors in that they do not seek to influence or control the companies they invest in, sometimes preferring to avoid holding voting shares at all.

Unlike active investors, passive investors buy a security and typically don't actively attempt to profit from short-term price fluctuations. Passive investors instead rely on their belief that in the long term the investment will be profitable.

An investment strategy involving limited ongoing buying and selling actions. Passive investors will purchase investments with the intention of long-term appreciation and limited maintenance.

For investors for whom the syndicate is a passive activity, a real estate syndicate's function as a tax shelter is limited. Losses and tax credits generated by the program may only be used by the passive investor against his or her aggregate passive ...

See also: Expense, Passive income, Personal finance, Compensation, Passive management