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  1. 1. Private Nonbank Financial Instermediaries
  2. 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. 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.
  4. 4. Private Nonbank Financial Intermediaries Brokerages A brokerage acts as an intermediary between buyers and sellers to facilitate securities transactions.
  5. 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.
  6. 6. Private Nonbank Financial Intermediaries Brokerages A brokerage can be either full service or discount.
  7. 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. 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. 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. 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. 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. 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. 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. 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.
  15. 15. Private Nonbank Financial Intermediaries Pawnshop a business establishment engaged in lending money on personal property delivered as security or pledge.