Peer to peer investing

Peer to peer investing

Finance

Markets

Bond
Commodity
Derivatives
Foreign exchange
Money
Over-the-counter
Private equity
Real estate
Spot
Stock

Participants

Investor

institutional

Retail
Speculator

Instruments

Cash
Credit line
Deposit
Derivative
Futures contract
Loan

Option (call
exotic
put)

Security
Stock

Time deposit
(certificate of deposit)

Corporate

Accounting
Audit
Capital budgeting

Credit rating agency

Risk management
Financial statement

Leveraged buyout
Mergers and acquisitions

Structured finance
Venture capital

Personal

Credit / Debt
Employment contract
Financial planning

Retirement
Student loan

Public

Government spending

Final consumption expenditure

Operations
Redistribution

Transfer payment

Government revenue

Taxation
Deficit spending

Budget (balance)
Debt

Non-tax revenue
Warrant of payment

Banks and banking

Central bank
Deposit account
Fractional-reserve banking
Loan
Money supply

Lists of banks

Regulation · Standards

Bank regulation
Basel Accords
International Financial Reporting Standards
ISO 31000
Professional certification
Fund governance
Accounting scandals

Economic history

Private equity and venture capital
Recession
Stock market bubble
Stock market crash

v
t
e

Peer-to-peer investing (P2PI) is the practice of investing money in notes issued by borrowers who are requesting a loan without going through a traditional financial intermediary and who are unknown to the investor. P2PI is not to be confused with Peer-to-peer lending (P2PL) which deals with the borrower’s part. Investing takes place online via a peer-to-peer lending/investing company. There is an individual investor and an individual borrower. The notes can be sold as a security and so investors can exit the investment before the borrower repays the debt.
P2PI is a method of debt financing that enables individuals to lend money without using an official financial institution as an intermediary. While P2PI removes the middleman from the process, it also involves more time, effort, and risk than general brick-and-mortar lending scenarios. [1]

Contents

1 Characteristics
2 History

2.1 United States
2.2 India

3 Legal regulation
4 Advantages and criticism

4.1 Interest rates
4.2 Credit risk
4.3 Government protection

5 See also
6 References

Characteristics[edit]
Peer-to-peer lending does not