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Definition

<p style="text-align: justify;">An <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">investor</span> who aims to maximise his <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">profits</span> over the long term by holding on to his <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">investments</span> instead of taking advantage of short term <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">high</span>s and <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">low</span>s in the market. Such an investor avoids the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">dealing costs</span> and taxes that result from frequently getting in and out of the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">market</span>, but may find that they are stuck in <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">shares</span> which are in a <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">bear trend</span> for many years. So-called "<span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">widows and orphans</span>" are passive investors because they lack the knowledge and confidence to be active.</p>