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Understand the difference between active and passive investing from "summary" of Investing Basics for Beginners by Razaq Adekunle
Active investing involves actively buying and selling stocks, bonds, or other securities in an attempt to outperform the market. This approach requires a significant amount of time, effort, and research to make informed decisions about which investments to buy and sell. Active investors often rely on market analysis, financial news, and other sources of information to guide their investment decisions. On the other hand, passive investing involves investing in a diversified portfolio of securities and holding them for the long term. Instead of trying to beat the market, passive investors aim to match the performance of a specific market index, such as the S&P 500. This approach requires less time and effort than active investing, as passive investors typically buy and hold a mix of assets that mirror the composition of the chosen...
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