Welcome to Finance Insider, Business Insider's summary of the top stories of the past 24 hours. Sign up here to get the best of Business Insider delivered direct to your inbox.
Mutual funds are bleeding cash at an unprecedented rate, warns Moody's
It's not getting any easier for stock pickers to hold on to their clients.
According to Moody's, investors have pulled cash from actively managed equity mutual funds in the US at the fastest year-to-date pace on record. The funds lost $129.11 billion of investor dollars from January to July, up from $99.88 billion a year earlier, data compiled by the Investment Company Institute and cited by Moody's show.
The flight of money away from managers who meticulously pick stocks and to exchange-traded funds is happening a bit faster than Moody's had forecast. The market share of passive investments last year was nearly 35%, more than the credit-rating agency's estimate of 34%.
Elon Musk reportedly met with Japan's SoftBank last year about taking Tesla private
Tesla's chief executive Elon Musk met with SoftBank CEO Masayoshi Son in April 2017 about the Japanese investment firm assisting in taking Tesla private, Bloomberg reported Wednesday.
The report came the day after Musk said he was considering taking Tesla private and that funding had been secured, but did not offer any specifics about the unprecedented move.
Bloomberg reported that Musk and Son failed to reach an agreement over the structure of the company, citing sources. Tesla was trading around $300 per share in April 2017 when the talks reportedly fell through. The talks are no longer underway, Bloomberg said.
One in 2 ICOs failed in the 2nd quarter - and those that succeeded suffered huge losses
Money continues to flood into the booming market for digital tokens issued by startups despite declines both in the quality of the projects seeking funding and in the investment returns, according to a new report.
Fifty-five percent of so-called initial coin offerings failed to complete in the second quarter, according to a report from the agency ICORating. That was 5% more than failed in the first quarter.
ICOs are a fundraising method in which companies and projects issue digital tokens structured like bitcoin or Ethereum. These tokens are sold in return for cash used to fund the development of the seller's businesses. ICOs exploded from almost nothing to be a multibillion-dollar market in 2017, surging in popularity alongside the rise in the price of bitcoin.
In markets news