ShmoopTube

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Finance a la shmoop what is a private investment company Shh we are hunting [Elmer Fudd appears from a bush]

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profits okay people it's private yes private private means not subject to

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the onerous rules of public investing and all that regulation that is when [Definition of a private investment company]

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it's only wealthy big boys and girls putting in their dough the presumption [Wealthy people giving money to the market]

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is that they have their own lawyers their own risk tolerances their own Ivy

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League education and they can figure out the deal on their very own they don't

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need mama government training wheels the way the public does in public offerings [The public riding a bike as the stabilisers are taken off]

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with publicly traded securities and so on like private wealthy educated

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investors get treated differently than Jo farmer who you know just graduated [Guy talking as Elmer Fudd keeps appearing in the background]

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high school so who all does this apply to like what's a private investor what

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investment vehicles are involved well hedge funds you know those go to private

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wealthy investors private equity funds same deal and venture capital funds same

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deal why because they go bankrupt all the time you can lose all your money in [Money going down the toilet]

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these things all the time and it happens and Joe Q public needs to be protected

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from that and there's good and bad because in these funds also you can make [The government saves the public from a fire breathing dragon]

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like a hundred times your money if you happen to win the one lottery ticket [Guy next to pile of money from Amazon stock]

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that goes up a whole lot and that's what people focus on when they sell them so

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Joe Q public at least according to government is to be protected from such

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a volatility and there's other investment vehicles beyond these three

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that get private attention away from the public but they have vehicles we can't [Elmer Fudd whispering]

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tell you about

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