CAIA Chapter 2 The Environment of Alternative Investments

refers to the institutions and entities that buy large quantities of securities for the portfolios they manage

is a group of investors joined by familial or other ties who manage their personal investments as a single entity, usually hiring professionals to manage money for members of the office

Most funds are strucutred as limited partnerships and offer incentive-based compensation schemes to their managers. The limited partnerships are usually managed by the general partner, while most of the investme funds are provided by the limited partners.

..such as larger dealer banks, act as agents for investors when they trade securities. Sell-side institutions make their research available to their clients and are more focused on facilitating transactions than on managing money.

occurs when a firm trades securities with the firm's own money in order to make a profit.

on the sell-side retail brokers that receive commissions for executing transactions and that have research departments that make investment recommendations.

allows an investment manager to carry out trades in multiple financial instruments at multiple broker dealers while keeping all cash and securities at a single firm.

offering documents, which are fromal descriptions of an investment opportunity that comply with federal securites regulation