Accumulation

  

Think about it like leaves in a rain gutter. Only they're made of gold. Or at least cash cabbage greenbacks.

Institutional investors wanting to own a huge, say, 15% stake in a large company accumulate shares over many trading days. Insurance/annuity buyers accumulate units of ownership in that policy over time. Investors wanting to live on the throw from dividends and bonds, such that they match what they earn in a normal working year...i.e. so that they can retire in style...accumulate that stream of dividends and interest payments over time.

Yeah, accumulation is all about collecting over time. Like those leaves in the gutter, which will probably sit there until you have children who you can order to do your chores for you.

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Finance: What is a Surety Bond?0 Views

00:00

Finance allah shmoop What is a surety bond Think sure

00:08

It t like certainty Remember when you were a kid

00:12

at summer camp and had to pony up a buck

00:14

to prove your heavy roller status at friday night's poker

00:17

game And then there was a buddy who promised to

00:20

pay more than that if you lost more than your

00:22

buck Well surety bonds air kind of like that We

00:25

repeat kind of a surety bond is an agreement between

00:28

three parties One party guarantees that a second party will

00:32

fulfil a promise to the third party For example one

00:35

signer might guarantee that a small business will honor a

00:39

government contract That is that small business will have to

00:42

go borrow a whole bunch of money to go build

00:44

a bunch of fence wire stuff for the government that

00:46

they would need somewhere in the south And then some

00:49

bigger contractor would guarantee that that small business will in

00:54

fact perform on the contract If the small business doesn't

00:57

perform the contract like as guaranteed building whatever fencing materials

01:02

and the government wanted to build will the person who

01:04

signed on their behalf would likely have to either pay

01:07

up or build the fence themselves The big guy i

01:09

either guarantor gives the little guy the principal surety in

01:15

delivering the contract to whoever wants it toe happen A

01:18

k a The oblige g remember that song about the

01:22

government there yet oblige E ope elijah Life goes on

01:26

Sorry we're done anyway all the parties involved bond with

01:30

certainty the delivery of whatever product or service that surety

01:34

bond is standing behind So yeah that's what it is 00:01:36.669 --> [endTime] And don't call us surety

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