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 ?
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.
This SOP applies to investment partnerships that are exempt from SEC registration under the Investment Company Act of 1940 and defined as investment companies in paragraph 1.
The Guide requires investment companies to list all of their individual securities in the statement of net assets or in an accompanying schedule of investments.
Investment companies present their results of operations in a statement of operations as specified in the Guide.
Investment companies normally enter into an investment advisory agreement under which they receive investment management.
1) Type (such as common stocks, preferred stocks, convertible securities, fixed-income securities, government securities, options purchased, options written, warrants, futures, loan participations, short sales, other investment companies, and so forth)
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.
An SOP entitled Foreign Currency Accounting and Financial Statement Presentation for Investment Companies, which will be published later this year, requires the reporting of all foreign currency gains and losses other than those related to investments.
Section 12(d)(1)(A) prohibits an investment company from a) acquiring more than three percent of the total outstanding voting stock of another investment company; b) investing more than five percent of its total assets in a single investment company; and c) investing more than 10 percent of its total assets in two or more investment companies.
As closed-end investment companies, the Funds do not issue and redeem their shares at NAV.

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