An investment company is a company whose main business is holding securities of other companies purely for investment purposes. The investment company invests money on behalf of its shareholders who in turn share in the profits and losses.
- Open-End Management Investment Companies (mutual funds)
- Closed-End Management Investment Companies (closed-end funds)
- UITs (unit investment trusts)
Also popular are private investment funds, which are simply private companies that make investments in stocks or bonds, but are limited to under 100 investors, are private and are not regulated by the SEC. These funds are often composed of very wealthy investors.
- "Investment Companies". U.S. Securities and Exchange Commission (SEC). Retrieved 2006-04-11.
|This economics-related article is a stub. You can help Wikipedia by expanding it.|