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Econ Videos 216 videos

Finance: What does "Breaking the Buck" Mean?
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What does “Breaking the Buck” mean? Breaking the buck means that a money market fund’s value has dropped to less than $1. This happens becaus...

Finance: What is the Tax Reform Act of 1986?
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What was the Tax Reform Act of 1986? Hit play to find out.

Finance: What is Disinflation?
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What is Disinflation? Disinflation is a term used for an interim slowdown of inflation rate. For example, a reduction of inflation growth from 3.5%...

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Finance: What is pooling: investment/interest? 3 Views


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Description:

A pooled interest occurs when two or more investors combine capital in order to make a joint investment. Especially if investing in a prosthetics company.

Language:
English Language

Transcript

00:00

Finance allah shmoop what is pooling Well it's aggregating no

00:08

no aggregating yeah Throwing in cash together partnering pooling interests

00:14

in an investment simply refers to two or more players

00:17

getting together to invest their money in whatever form mutual

00:21

funds are are pooled investment So our index funds hedge

00:24

fund bond funds etfs reads mlps any uh pretty much

00:28

and well every other investment vehicle that can scale to

00:31

allow for two or twenty or two million investors to

00:34

all come together and invest well Why would people want

00:38

to do this scale or rather synergies of costs from

00:41

scale Whether you have one investor or ten thousand you

00:45

need to file papers and there are usually pretty much

00:48

always lawyers involved and accountants and other wall street gum

00:52

sucking gadflies and the marginal additional cost of servicing ten

00:56

thousand pooled investors is only somewhat more than servicing won

01:00

So in many cases pooling makes a lot of sense

01:03

when investors interests are generally aligned and when they're not 00:01:07.229 --> [endTime] around there's trouble

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