ShmoopTube

Where Monty Python meets your 10th grade teacher.

Search Thousands of Shmoop Videos


Board of Directors Videos 111 videos

Finance: What are Passive Investing and Passive Investors?
2 Views

What are Passive Investing and Passive Investors? Passive investing and passive investors are ones who opt to ride the market out over the long ter...

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 Power Of Attorney (Trading Authorization)?
2 Views

Power of attorney refers to the authorization to conduct business on legal and financial matters on behalf of another party. So...choose wisely.

See All

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


Share It!


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

Related Videos

GED Social Studies 1.1 Civics and Government
39794 Views

GED Social Studies 1.1 Civics and Government

Fake News
11938 Views

How do you tell fake news from real news?

Finance: What is Bankruptcy?
260 Views

What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...

Finance: What is a Dividend?
1777 Views

What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...

Finance: How Are Risks and Rewards Related?
589 Views

How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...