You invest in a bond that has an 8% coupon. It pays interest twice a year. A quarter of the year in (and half way to the first interest payment), your cat starts upchucking something blue, and you decide to take Miss Snuggles to the vet. To pay for it, you sell your bond. When selling your bond, you can tack on the 2% you would have earned so far in interest. Only a quarter of the year has passed, so a quarter of the annual 8 percent interest gets paid. That's the amount that has accrued.
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Finance: What is pooling: investment/int...3 Views
Finance allah shmoop what is pooling Well it's aggregating no
no aggregating yeah Throwing in cash together partnering pooling interests
in an investment simply refers to two or more players
getting together to invest their money in whatever form mutual
funds are are pooled investment So our index funds hedge
fund bond funds etfs reads mlps any uh pretty much
and well every other investment vehicle that can scale to
allow for two or twenty or two million investors to
all come together and invest well Why would people want
to do this scale or rather synergies of costs from
scale Whether you have one investor or ten thousand you
need to file papers and there are usually pretty much
always lawyers involved and accountants and other wall street gum
sucking gadflies and the marginal additional cost of servicing ten
thousand pooled investors is only somewhat more than servicing won
So in many cases pooling makes a lot of sense
when investors interests are generally aligned and when they're not 00:01:07.229 --> [endTime] around there's trouble
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