2. Private Nonbank Financial
Intermediaries
Investment Houses
an enterprise engaged in guaranteed
underwriting of securities of another person
or enterprise, including securities of
government and its instrumentalities.
3. Private Nonbank Financial
Intermediaries
Finance Companies
a corporation or partnership which is primarily
organized for the purpose of extending credit facilities
to consumers and to industrial or agricultural
enterprises.
They do this by discounting or factoring commercial
papers or accounts receivables or buying and selling
contracts, leases, chattel mortgages and other
evidences of indebtedness
or by leasing motor vehicles, heavy equipment and
industrial machineries and equipment, appliances, etc.
5. Private Nonbank Financial
Intermediaries
Brokerages
Brokerage companies are compensated
via commission after the transaction has been
successfully completed.
For example, when a trade order for a stock is
carried out, an individual often pays a transaction
fee for the brokerage company's efforts to
execute the trade.
7. Private Nonbank Financial
Intermediaries
Full service brokerage
provides investment advice, portfolio
management and trade execution.
In exchange for this high level of
service, customers pay significant
commissions on each trade.
8. Private Nonbank Financial
Intermediaries
Discount Brokers
allow investors to perform their own
investment research and make their own
decisions.
The brokerage still executes the investor's
trades, but since it doesn't provide the other
services of a full-service brokerage, its trade
commissions are much smaller.
9. Private Nonbank Financial
Intermediaries
Investment Company
an entity primarily engaged in
investing, reinventing or trading in securities.
a corporation or a trust through which individuals
invest in diversified, professionally managed
portfolios of securities by pooling their funds
with those of other investors.
Rather than purchasing combinations of
individual stocks and bonds for a portfolio, an
investor can purchase securities indirectly
through a package product like a mutual fund.
10. Private Nonbank Financial
Intermediaries
Fund Manager
The person(s) resposible for implementing a
fund's investing strategy and managing its
portfolio trading activities.
A fund can be managed by one person, by two
people as co-managers and by a team of three or
more people.
Fund managers are paid a fee for their work,
which is a percentage of the fund's average assets
under management.
Also known as an "investment manager".
11. Private Nonbank Financial
Intermediaries
Lending Investor
a person who make a practice of lending
money for themselves or others at interest
and not organized under any specialized
chartered law.
12. Private Nonbank Financial
Intermediaries
Insurance Companies
pool risk by collecting premiums from a large
group of people who want to protect
themselves and/or their loved ones against a
particular loss, such as a fire, car accident,
illness, lawsuit, disability or death.
13. Private Nonbank Financial
Intermediaries
Insurance Companies
Insurance helps individuals and companies
manage risk and preserve wealth.
How?
by insuring a large number of people,
insurance companies can operate profitably
and at the same time pay for claims that may
arise.
14. Private Nonbank Financial
Intermediaries
Venture Capital Corporation
a corporation in which Money provided by
investors to startup firms and small businesses
with perceived long-term growth potential.
This is a very important source of funding for
startups that do not have access to capital
markets.
It typically entails high risk for the investor, but
it has the potential for above-average returns.
