Investment company

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Investment company

A firm that that invests the funds of investors in securities appropriate for their stated investment objectives in return for a management fee. See also: Mutual fund.

Investment Company

A company that provides investment advisory services and/or operates mutual funds. An investment company that operates mutual funds allows its clients to carry greater or lesser risk, depending on their particular investment goals. The investment company may or may not actively manage mutual funds. Investment companies managing more than a certain amount of money must register with the SEC. See also: Asset management, Brokerage.

investment company

A firm in which investors pool their funds to allow for diversification and professional management. Because individual firms often specialize in particular types of investments, the potential returns and risks vary considerably among firms. Charges to investors—both to acquire shares in a firm and to pay management for operating the company—vary significantly from investment company to investment company. Also called management company. See also closed-end investment company, conduit theory, management fee, mutual fund, performance fee, regulated investment company.

Investment company.

An investment company is a firm that offers open-end funds, called mutual funds, closed-end funds, sometimes called investment trusts, or exchange traded funds to the public.

By describing a company offering the funds as an investment company, it's easier to distinguish the company from the funds that it offers.

For example, a single investment company might offer an aggressive-growth fund, a growth and income fund, a US Treasury bond fund, and a money market fund.

Or a closed-end investment company might offer an international fund focused on a single country, such as Ireland, or a region, such as Latin America.

References in periodicals archive ?
Investment companies with board-contingent plans to recognize a liability for excess costs, computed in the same way as for an enhanced 12b-1 plan, when the company's board commits to pay such costs.
However, these decisions do signal that the provisions will not be interpreted liberally, and, in the aftermath of ADP, it appears that the types of entities that will qualify as investment companies for Illinois tax purposes have been severely limited.
To comply with SEC rules and regulations, registered investment companies must make certain disclosures in addition to those required by generally accepted accounting principles.
The illustrative financial statements of management investment companies in the Guide contain a detailed schedule of investments.
FOREIGN CURRENCY ACCOUNTING FOR INVESTMENT COMPANIES
93-1, Financial Accounting and Reporting for High-Yield Debt Securities by Investment Companies, provides guidance on financial reporting by investment companies for high-yield debt securities that are held as investments.
Since 1958 the National Association of Small Business Investment Companies (NASBIC) has represented the SBIC industry, promoting its expansion and vitality through effective representation and successful professional programs.
This relief will enable registered investment companies to invest in these ETFs in excess of the limits of Section 12(d)(1)(A) of the Investment Company Act of 1940, subject to certain conditions.
The Funds are closed-end registered investment companies whose shares are listed on the New York Stock Exchange.
NYSE: FRF), said today that it intends to begin investing in a number of selected foreign investment companies ("FIC's") which are domiciled and invest in France.
The investment adviser acts as the investment adviser to more than 100 registered investment companies and offers investment advisory services to individuals and institutional accounts.
Affected registered investment companies must comply with the new rule by July 31, 2002.

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