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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.

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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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