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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Pool  

Definition 1.

In capital budgeting, the concept that investment projects are financed out of a pool of bonds, preferred stock, and common stock, and a weighted-average cost of capital must be used to calculate investment returns. In insurance, a group of insurers who share premiums and losses in order to spread risk. In investments, the combination of funds for the benefit of a common project, or a group of investors who use their combined influence to manipulate prices.
 

Definition 2.

Group of related financial instruments, such as mortgages, combined for resale to investors on a secondary market. also called mortgage pool.
 
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