Thus, even if different investors in the Series B
invest different amounts of money, each share of Series B will hit the cap at the same sale of company valuation.
Not exact matches
Even if you are
investing in several
different funds, you would be applying the MER only on the
amount of money you have in each fund.
In a typical ladder, an investor would
invest an equal
amount of money into a series
of bonds, with each bond maturing in a
different year.
The
amount you will receive every month depends on a number
of factors: your age, gender, state
of residence, how much
money you
invest in the annuity and what
different insurance companies are quoting for their particular annuity products.
To do it, you divide the
amount of money you want to have in CDs, and
invest smaller
amounts into
different CDs with varied maturity dates.
By using a CD ladder strategy, you divide the
amount you
invest in many CDs with
different maturity dates so that you are always close to the maturity date
of at least some
of your
money.
As an investor with a limited
amount of money to
invest, buying enough individual shares
of different companies to fully diversify can become costly in a hurry.
And while the example above involved a small group
of people
of the same age
investing the same
amount of money, insurers» annuities are bought by thousands
of people
of different ages (although they tend to be older)
investing a range
of sums.
The stock market is quite
different from the property market in that you don't have to commit a massive
amount of money by
investing in stocks right away.
For example,
money invested in CD's would be treated
different than
money received from life insurance proceeds, even if it was the same
amount, strictly because
of taxation.
It also provides access
of investing additional
amount, changing between six
different funds and withdrawing
money as well.