Surrounded by the beauty of the Texas Hill County, the City of Helotes is a vibrant community boasting a flourishing economy and a high quality of life.
Passive Investing. What is 'Passive Investing'. Passive investing is an investment strategy that aims to maximize returns over the long run by keeping the amount of buying and selling to a minimum. The idea is to avoid the fees and the drag on performance that potentially occur from frequent trading.
If the stake is less than 20 percent, generally accepted accounting principles define it as a passive investment -- meaning it isn't big enough to exert major influence over the company's policies and direction. Passive investments must be accounted for under either the cost method or the fair value method.