Passive Activity
An activity from which you have the potential to profit but in which you do not physically participate.

Investopedia Says:
The income from rental properties is a good example of a passive activity. Making a distinction between passive and active income is important because you can claim a passive loss only against income generated from passive activities. You cannot claim a passive loss against active income.

Related Terms:
Active Income
Income
Passive Income
Portfolio Income

• Accumulation Period
• Accumulation Plan
• Accumulation Unit
• Acid-Test Ratio
• Acquired Fund Fees And Expenses (AFFE)
• Acquired Fund Fees And Expenses (AFFE)
• Acquisition
• Acquisition Debt
• Acquisition Fee
• Acquisition Indigestion
• Acquisition Loan
• Acquisition Premium
• A-Credit
• Across The Board
• Acting In Concert
• Actionable
• Active Bond
• Active Bond Crowd
• Active Box
• Active Income
• Active Investing
• Active Management
• Active Participant Status
• Active Risk
• Activities of Daily Living (ADL)