Active Investors and Transaction Costs

by Tim Bock
Active investors, as a group, must by definition underperform a strategy that passively holds a market portfolio of stocks, since active investors incur greater transaction costs. The reduced liquidity of small companies or emerging country stocks incurs higher transaction costs, making it even more difficult to outperform a passive strategy.
Source: http://www.investorguide.com/igu-article-995-stock-strategies-active-versus-passive-management.html
Was this Tip useful?  
Was useful  Was not useful
Copy and paste this HTML in your website to link to this page