Money talks. Show me the money. Put your money where your mouth is. That’s the money shot. Right on the money! There are countless phrases and idioms in our everyday speech that reference money. This is probably because the culture of our society is so focused on it. Money is often tied into the end goal of the perfect dream house or dream car or luxurious vacation getaways. So it is no surprise that there are several careers, fields, services and companies devoted primarily to money, and making as much of it as possible in as many ways as possible.
IPO firms, quarterly snapshots, prime broker services
For those in the investment world, terms like these are used regularly. But for those attempting to break onto the scene, things like quarterly snapshot and IPO data may seem a bit confusing out of context. But those committed to delving into the business of money will want to continue to learn and study every last piece of information they can get their hands on in order to reach success in the end. While glancing over some basics of the business is a good start, the intricacies of the investment industry are so great and complex that it barely breaks the surface.
A quick peek at the top of the money tree
So what are some key things to know, or to know to look for and learn?
IPO refers to initial public offerings, which is when institutional investors buy shares of a company to sell to the public for the very first time, turning a company that had been privately held into a public business. The prices of IPOs are about 13% to 15% less than regular trading prices, on average, and about 10% to 15% of the company is being offered for sale.
- Hedge funds
Initial public offerings typically go to hedge funds and investment banks that are willing to buy quite a bit of stock before the actual debut. The companies can then see significant gains on the first day of trading. These hedge funds are meant to manage the risks and returns of investing by doing so in a variety of ways.
- Quarterly snapshot
A quarterly snapshot, very simply, is a quick look at the financial reports of a business or institution for one quarter of the year. It can give an idea of how well things are going and give projections of how things might go in the future. By dividing the year and financial transactions into fourths, it becomes easier to compare the risings or fallings of the market and what to shoot for.
Each branch of the investment world money tree is complex and varied. But by learning about the movement of money, the market, our society, and how all of these things interconnect, you can begin to understand how hedge funds, institutional investors, stocks, and money in general work to keep things up and running.