pool

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Pool

In capital budgeting, the concept that investment projects are financed out of a pool of bonds, preferred stock, and common stock, and a weighted-average cost of capital must be used to calculate investment returns. In insurance, a group of insurers who share premiums and losses in order to spread risk. In investments, the combination of funds for the benefit of a common project, or a group of investors who use their combined influence to manipulate prices.

Pool

1. A group of financial instruments that may be placed into the same investment vehicle. A major example is a mortgage pool, which consists of mortgages that are divided up and placed into large groups to be sold as securities.

2. Funds that a group of investors put together to invest for mutual benefit. A major example of a pooled fund is a mutual fund.

pool

1. A temporary affiliation of two or more people in an attempt to manipulate a security's price and/or volume. The pool is necessary in order to acquire the capital needed to manipulate a stock having a large market value. Pools were especially popular in the 1920s and early 1930s but now have been regulated out of existence. See also blind pool, trading pool.

pool

A group of mortgage loans used as security for a bond issue. See collateralized mortgage backed securities.

References in periodicals archive ?
First, the origins of high risk pools are found in self-governing alliances of insurers operating under nominal state control.
Of course, choosing to self-insure (some states classify public risk pools as self-insurance, others do not) meant that public entities had to outsource much of the insurance administration process, notably claims and TPAs were there to fill the gap.
However, the risk pool provides partial effective insurance, even with full stated coverage, since pool members share their losses with each other and retain a share of their own loss equal to L/n.
Keeping track of risk pool contributions according to each insurance company, patient, procedure, and date of service is time-consuming, but it is vital to maintaining accurate records.
In fact, this high risk pool would have to look a lot like a single payer system because it would result in people paying identical sums for coverage and would require government intervention to control costs.
He asked if the ailing individual could switch to the risk pool, thereby lowering the costs to his employer and fellow workers.
Based on the results of our survey and more than 35 years of experience CA has with high risk pools, we believe that high risk pools will help stabilize future health insurance markets while at the same time ensuring that all Americans, including those in poor health who are in the greatest need of coverage, are guaranteed the right to purchase insurance if they are willing and able to pay for it," said CA President Wayne Nelson.
LGC firmly believes that the law has given the elected and appointed local officials on the board of a risk pool the authority to determine how to best run a pool in the interest of its member local governments.
Other action surrounding risk pools involved how displaced workers use them, Ms.
Boston based Public Entity Risk Pool selects industry leading RMIS
Texas Municipal League Intergovernmental Risk Pool (TMLIRP), a provider of risk financing and loss prevention services to Texas municipalities and other units of local government, and Guidewire Software Inc.
Similar to the high risk pool program, the retiree reinsurance program begins no later than June 21, 2010 and expires with broader reforms in 2014, unless exhausted first.