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Accounting Videos 351 videos

Finance: What is Collateralized Mortgage Obligation (CMO)?
65 Views

What is Collateralized Mortgage Obligation (CMO)? A CMO is a mortgage bond that consists of a large number of different individual mortgages bundle...

Finance: What are Secured Bonds v Unsecured Bonds, and what is Non-Recourse Debt: Debentures (Subordinated and Senior)?
68 Views

When a bond is secured, it means it's protected, i.e. there are assets that would be forfeited if repayment is not made. When it's unsecured... it'...

Finance: What is Counterparty Risk?
9 Views

What is Counterparty Risk? Counterparty risk is the risk to either party within a transaction that the other will not or be unable to abide by the...

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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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