Active investment management.

Active management in investments can, in a nutshell, be described as a kind of attempt to apply human intelligence to make the most profitable transactions in the stock market. Today, active management is still the dominant investment model. Management companies try to find the most attractive stocks, bonds and funds and predict the most appropriate time to buy and sell them. Based on their findings, they purchase securities, often taking advantage of credit to increase potential returns. In addition to traditional stocks, bonds, and funds, they often hold high-risk derivatives.