mutualism

Examples of mutualism in the following topics:

• Investment Institutions

  • Investment institutions include mutual funds and finance companies.A mutual fund manager groups together funds from many investors and invests the money in a variety of stocks.Consequently, a mutual fund diversifies stocks, and it lowers investors' risk.For example, you start your own mutual fund and offer investors a chance to invest in this fund.You take the money and buy 30 different corporate stocks.The Coca-Cola stock rises one day while the value of IBM stock falls.Overall, the average of the fund's 30 stocks should earn a return to your fund and to the investors.If you bought only Kmart corporate stock, you would lose your investment if this company bankrupts.
  • Mutual fund companies have different strategies and characteristics, and well-known mutual fund companies include Fidelity, Vanguard, and Dreyfus.Mutual fund companies develop strategies where they only buy stock in certain industries, large companies, or foreign company's stock.Furthermore, the mutual fund company may issue a fixed number of shares to the fund that we call closed-end mutual funds.Then investors may buy and sell these shares inover-the-counter markets, just like stock.Thus, the mutual fund company does not buy its shares back for closed-end mutual funds.A mutual fund company may offer another alternative called open-ended mutual funds.Mutual fund company can buy back shares to the fund, and the price of the shares becomes tied to the value of the stock in the fund.Finally, the mutual fund managers use two methods to earn profits.First, fund managers charge management fees for no-load funds, usually 0.5% of asset value.For the second method, the fund managers charge a commission for selling or purchasing of shares for load funds.The load reflects the commission that lowers the fund's value.
  • Money-market mutual funds are similar to mutual funds.However, the fund manager buys only money market securities, and the fund excludes corporate stock.Theory behind money-market mutual funds is simple.If you have five friends with $2,000 each, and they want to buy a Treasury bill with a minimum face value of $10,000, then your friends can pool their money together and buy one T-bill.Once the T-bill matured, your friends split the interest among themselves.
  • Money-market mutual funds are very popular because these funds offer check-writing privileges, and some investors do not want to tie up their funds for a long time.Moreover, the value of the fund does not change much, when interest rates changes because money market securities have maturities less than one year.In 2008, money-market mutual funds had assets of $3.8 trillion.
  • Commercial banks offer money market deposit accounts that are similar to the money-market mutual fund.Two funds differ because the Federal Deposit Insurance Corporation (FDIC) insures the money market deposit accounts, while it does not insure money-market mutual funds.If your bank bankrupted and you invested in money market deposit accounts, subsequently, you are guaranteed not to lose you funds up to the maximum insured amount.

• The Common Financial Instruments

• Foundations of successful relationships

  • Mutual trust: Not all building blocks are created equally; the most important of the five foundational elements is mutual trust.
  • In order for a partnership to be successful, trust must be mutual.
  • Measurable, mutual goals: A key element necessary for relationships to be successful is having both parties share measurable, mutual goals.
  • Commitment to mutual gain: The final building block in the foundation of successful relationships relates to the level of commitment each partner has in creating mutual gain.
  • Although mutual investments strengthen mutual gain, they cannot be easily transferred if a partner wishes to leave the relationship.

• Management in Different Types of Business: For-Profit, Non-Profit, and Mutual-Benefit

  • A mutual-benefit non-profit corporation can be non-profit or for profit.
  • However, mutual benefit corporations are usually formed for nonprofit purposes like managing a condo association, a downtown business district, or a homeowners association.
  • Managers in mutual benefit organizations are, therefore, more concerned about improvements in human and environmental well-being than maximizing profits for external shareholders.
  • This strategy cannot work for a non-profit or mutual-benefit corporation.
  • In those cases, management must either appeal to the employees' sense of duty to the mission of the non-profit or to the benefit they would receive from a well-run mutual-benefit corporation.

• A Nation of Investors

  • Mutual funds enable small investors, who may not feel qualified or have the time to choose among thousands of individual stocks, to have their money invested by professionals.
  • And because mutual funds hold diversified groups of stocks, they shelter investors somewhat from the sharp swings that can occur in the value of individual shares.
  • There are dozens of kinds of mutual funds, each designed to meet the needs and preferences of different kinds of investors.
  • Attracted by healthy returns and the wide array of choices, Americans invested substantial sums in mutual funds during the 1980s and 1990s.
  • At the end of the 1990s, they held $5.4 trillion in mutual funds, and the portion of U.S. households holding mutual fund shares had increased to 37 percent in 1997 from 6 percent in 1979.

• Market Actors

  • Market actors include individual retail investors, mutual funds, banks, insurance companies, hedge funds, and corporations.
  • Insurance companies are generally classified as either mutual or proprietary companies.
  • Hedge funds are not considered a type of mutual fund.
  • There are three types of U.S. mutual funds: open-end, unit investment trust, and closed-end.
  • As of 2007, index funds made up over 11% of equity mutual fund assets in the United States.

• Inductance

  • where M is defined to be the mutual inductance between the two devices.
  • The larger the mutual inductance M, the more effective the coupling.
  • A large mutual inductance M may or may not be desirable.
  • We want a transformer to have a large mutual inductance.
  • Units of self-inductance are henries (H) just as for mutual inductance.

• Cooperation Among Microorganisms

  • Cooperative behavior, includes mutualism and altruism, benefits one party while the other performs a certain behavior.
  • In microbial systems, there are two main types of cooperation, altruism and mutualism.
  • Mutualism is a relationship between microorganisms that is mutually beneficial (+/+).

• Inductance

  • Mutual inductance is the effect of Faraday's law of induction for one device upon another, such as the primary coil in transmitting energy to the secondary in a transformer.
  • where M is defined to be the mutual inductance between the two devices.
  • The larger the mutual inductance M, the more effective the coupling.
  • Transformers run backward with the same effectiveness, or mutual inductance M.
  • Their mutual inductance M indicates the effectiveness of the coupling between them.

• Summary of Formulas

  • If A and B are mutually exclusive then P(A AND B) = 0 ; so P(A OR B) = P(A) + P(B).