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 ?
Annabel Brodie-Smith, communications director at the Association of Investment Companies (AIC) said: "The investment company sector has a long and proud history of delivering returns for shareholders, and what many shareholders are increasingly looking for is a reliable dividend in unreliable times.
Some 10 investment companies broadened their investment remit in 2009 (compared to just six in 2008), illustrating the role of the independent Board in ensuring investment companies continue to maintain their relevance and potential.
The financing squeezeIn Kuwait, investment companies are prevalent; with around 100 registered investment companies (46 of which are listed on the Kuwait Stock Exchange) and several other industrial and real estate companies with large investment portfolios.
Other investment companies in the sector are also reported to be in difficulties.
For those entities that are investment companies under the SOP, it also addresses whether the specialized industry accounting principles of the Guide should be retained by a parent company in consolidation or by an investor that has the ability to exercise significant influence over the investment company and applies the equity method of accounting to its investment in the entity (referred to as an equity method investor).
obligations that accrued through regulated investment companies from their taxable income, but only if the regulated investment company (or, as is usually the case, a designated fund of the company) meets the 50% U.S.
The survey covered 31 investment companies overseeing pounds 17bn of assets and 170 IFAs.
The company's strong growth made it a target of investment companies, and Chicago-based private-equity firm Madison Capital Partners bought the company in 1997.
Open-end investment companies, commonly known as mutual funds, do not issue shares in their funds for resale to other potential shareholders.
But in 1997, the chief of the division that enforces the rules and regulations covering investment companies (the formal name for mutual funds), called attention to potential abuses, including market timing.
Chapters cover such topics as securities regulation, exemptions from registration, proxies, liabilities, registration, tender offers, fraud liability, insider reporting, SEC enforcement, market regulation, investment companies, advisors, and privacy rules.
That message was loudly echoed throughout Southern California's lush Ojai Valley Inn and Spa where more than 170 venture capitalists and investment bankers gathered at the recent conference of the National Association of Investment Companies (NAIC), the trade association for investment companies that invest in minority business'.

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