Investment club


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Investment club

A group of people who combine their money into a larger pool, then invest collectively in stocks and bonds, making decisions as a group.

Investment Club

A group of individual investors who pool their money and make investment decisions together. The advantage of an investment club is that it allows small investors to take advantage of a diversified portfolio when they otherwise may not be able to afford it. An investment club may be informal or it may be legally constituted. See also: Investment company.

investment club

A group of people who meet regularly and pool their funds to invest in securities. In many instances, a club is formed as much for social and educational reasons as for making profits. Since most investment clubs are formed as partnerships, their dividends, realized capital gains, and losses are passed through for tax reporting by the individual members.
Are investment clubs a good idea? Why?

Investment clubs offer many benefits with few drawbacks. The individual investor joins with a group of peers to invest in stocks and other securities. The clubs focus on education: each member learns from and teaches the others. The monthly meetings create a comfortable social setting to help the individual stay focused on investment goals. Members are usually required to contribute a minimum amount each month to the investment pool as well as commit time to do investment research. And the clubs' financial returns are often very successful. To get started, contact the National Association of Investors Corporation (www.better-investing.org), which offers guidance to new clubs, or visit www.bivio.com and register to connect with others.

Sharon Rich, Financial Planner, WOMONEY, Belmont, MA

Investment club.

If you're part of an investment club, you and the other members jointly choose the investments the club makes and decide on the amount each of you will contribute to the club's account.

Among the reasons that clubs are popular are that they allow investors to commit only modest amounts, share in a diversified portfolio, and benefit from each other's research.

While clubs may establish themselves informally, many groups use the resources of BetterInvesting, an investor education membership organization.

Its website, www.betterinvesting.org, provides information on how to start an investment club and support services to existing clubs.

References in periodicals archive ?
com)-- 20/20 Investment Club Recognized as One of Nation's Longest Running is Setting Out to Inspire Others
As long as the business of the investment club is not carried on "by way of business", it will not be a business requiring authorisation from the QFC Regulatory Authority.
Around 1959, while young and working at a research and development lab, some colleagues and I formed an investment club and turned $10 into $5 with our young get-rich-quick mindsets and approaches.
A new investment club has been formed in London with the aim of becoming active in Greece and Cyprus.
So in 2000, she formed the Black Street Investment Club, a forum for 16 boys between the ages of 10 and 16 to pool their money to invest in stocks.
After the takeover bid, investors, who are all members of the Campaign for Real Ale members' investment club, have bought more than 3 % of the stock exchange listed business in a show of support for the plans of Cains's joint owners Ajmail and Sudarghara Dusanj.
THE Vikings have plundered our investment club competition for the second time in a year.
We were as dumb as we could get,'' said Shorkey, who formed an investment club in 1987 with six of his co-workers at a Nestle warehouse in Loma Linda.
If you're interested in forming a new or joining an existing investment club, start with the National Association of Investors Corporation (NAIC).
But when member Sherryl Weathers introduced financial literature after listening to a stockbroker on a local radio program, the group was so surprised, it split right down the middle and the Sistah Girl Investment Club was born.

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