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Pooled Investment

Any time a bunch of investors throw their dough in to invest as a collective group, it's called a pooled investment. (We're talking mutual funds, index funds, ETFs... the list goes on.)

Why do it? It spreads risk and adds liquidity. Just make sure there's water in the pool before you start throwing those securities in. We'd rather avoid another incident.

Find other enlightening terms in Shmoop Finance Genius Bar(f)