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Capital Call
A capital call (also known as a draw down or a capital commitment) is a legal right of an investment firm or an insurance firm to demand a portion of the money promised to it by an investor. A capital call fund would be the money that had been committed to the fund. The capital call is the act of actually transferring the promised funds to the investment target. A capital call agreement defines capital call terms. For example, when an investor buys into a real estate fund, that fund's managers may wait some time before using the investor's money to buy real estate, either because they are waiting for real estate prices to be favorable, or because they are researching new deals. When they are ready to buy real estate, the fund managers issue a capital call, requiring investors who have committed money to the fund to transfer that money over. The fund might also borrow funds instead of using the investor's money. This allows the fund to benefit from leverage Leverage or leverag ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Investment Firm
An investment company is a financial institution principally engaged in holding, managing and investing securities. These companies in the United States are regulated by the U.S. Securities and Exchange Commission and must be registered under the Investment Company Act of 1940. Investment companies invest money on behalf of their clients who, in return, share in the profits and losses. Investment companies are designed for long-term investment, not short-term trading. Investment companies do not include brokerage companies, insurance companies, or banks. In United States securities law, there are at least three types of investment companies: * Open-End Management Investment Companies (mutual funds) *Face amount certificates companies: very rare. *Management companies * Closed-End Management Investment Companies (closed-end funds) * UITs (unit investment trusts): only issue redeemable units. In general, each of these investment companies must register under the Securities Act of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Insurance Firm
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. An entity which provides insurance is known as an insurer, insurance company, insurance carrier, or underwriter. A person or entity who buys insurance is known as a policyholder, while a person or entity covered under the policy is called an insured. The insurance transaction involves the policyholder assuming a guaranteed, known, and relatively small loss in the form of a payment to the insurer (a premium) in exchange for the insurer's promise to compensate the insured in the event of a covered loss. The loss may or may not be financial, but it must be reducible to financial terms. Furthermore, it usually involves something in which the insured has an insurable interest established by o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
