Mark is correct about the jazz chords. This is called "voice leading" when one chord leads smoothly to the next as if each "voice" were being sung by a chorus. Skipping around from chord to chord in various areas of the guitar would be like a chorus singing one note in the lower register and suddenly awkwardly jumping to a note in a higher register. The ones who consider it "bad form" are the ones who have had some musical theory training. This exempts many rock and rollers as well as folkies.

Some folk players hear the voice leading without knowing it, though.

Frank