DEFINITION of 'Actionable'

A business directive or investment strategy that can feasibly be accomplished in the near future. Company managers and investors try to identify things that are currently actionable, as they may be prerequisites toward accomplishing future goals and higher level directives.

This usage is different from the standard legal definition of actionable, which means that something has provided sufficient grounds to file a lawsuit.

BREAKING DOWN 'Actionable'

For example, a mutual fund may spend a month researching a company, but only when an actual trade to purchase the stock is prepared does the decision become "actionable".

Investors often look to certain times of the year when their investments (current or proposed) may become actionable. Such times are often around earnings season, as it's a natural time to assess where a company is heading and how well it has accomplished prior goals set for the current period.

Another time when investment decisions may move from "proposed" to "actionable" is when changes are made to short-term interest rates, or when major life transitions such as changing jobs, buying a home, or retirement are just around the corner.

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