ShmoopTube

Where Monty Python meets your 10th grade teacher.

Search Thousands of Shmoop Videos


Credit Videos 265 videos

Finance: What does "Breaking the Buck" Mean?
7 Views

What does “Breaking the Buck” mean? Breaking the buck means that a money market fund’s value has dropped to less than $1. This happens becaus...

Finance: What is Collateralized Mortgage Obligation (CMO)?
65 Views

What is Collateralized Mortgage Obligation (CMO)? A CMO is a mortgage bond that consists of a large number of different individual mortgages bundle...

Finance: What is Above Full Employment Equilibrium?
20 Views

What is Above Full Employment Equilibrium? Above Full Employment Equilibrium happens when an economy is basically doing more than it realistically...

See All

Finance: What is an Omnibus Account? 111 Views


Share It!


Description:

An omnibus account is an investment account in which a collection of investors have invested their capital to own a pro rata share of that cooperative investment. Either that, or it’s a lot of buses.

Language:
English Language

Transcript

00:00

Finance a la shmoop. What is an omnibus account?

00:06

Herbi just eats leaves, Carni just eats meat, Omni well it's pretty much [Different buses eating stuff]

00:12

everything. So yeah an omnibus as in bus-i-ness or business account services is

00:18

a bunch of investors who've all pitched in or wired in their capital to become a

00:22

percentage owner of that omnibus account. Why would people do this? Scale, volume,

00:28

discounts size, heft. When you have a lot of money in an account basic things like [Lots of money in a suitcase]

00:34

audit and legal fees and brokerage services and the fees with them and

00:38

other one-off costs get amortized across a lot of people in dollars invested [Definition of Amortization]

00:44

rather than being laid entirely or solely on one investor where they can

00:49

then be a meaningful percentage of the total and with an omnibus account you [Bus labelled Omni eating leaves]

00:53

also get anonymity since it's a broker dealing in street name with the account [Anonymity stamp]

00:58

interfacing with the street well investors can live if they want in the

01:02

lovely dark shadows of Erewhon. Omnibus accounts are sort of like your own [Full moon in a dark sky]

01:08

custom mutual fund without the whole nav, net asset value stamp requirements at

01:13

the end of each trading day and all the other regulations and filings and legal

01:17

crap needed for publicly offered securities it's like having a fully [Book labelled my very own omnibus account]

01:21

gassed up bus with a working GPS and Waze system you can drive anywhere you [Guy sat on a bus]

01:26

want on the investing landscape you don't have to tell anyone outside of

01:29

your own partners about it, and it works great as long as you all want to eat the

01:34

same kind of financial cooking.. [Omni asking Carni if he is going to finish his food]

Related Videos

GED Social Studies 1.1 Civics and Government
39794 Views

GED Social Studies 1.1 Civics and Government

Fake News
11938 Views

How do you tell fake news from real news?

Finance: What is Bankruptcy?
260 Views

What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...

Finance: What is a Dividend?
1777 Views

What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...

Finance: How Are Risks and Rewards Related?
589 Views

How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...