Investment company


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Related to Investment company: Private Investment Company

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.

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References in periodicals archive ?
351(e) precludes the nonrecognition if the transferor transfers property to an investment company, regardless of whether the company is an existing investment company or a new one.
Technical inconsistencies in the investment company provisions
351-1(c)(1), a transfer of property after June 30, 1967, was considered to be a transfer to an investment company if W the transfer results, directly or indirectly, in diversification of the transferors' interests, and (ii) the transferee is (a) a regulated investment company (RIC), (b) a real estate investment trust (REIT), or (c) a corporation more than 80 percent of the value of whose assets (excluding cash and non-convertible debt obligations from consideration) are held for investment and are readily marketable stocks or securities, or interests in RICs or REITs.
Beware the new "investment company" rules
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.
SEC stresses importance of municipal bond integrity
Instead, the investment company exception contained in the regulations applies to the first rule (ownership) and not the second rule (character as trade or business asset).
Liquid assets lost in investment companies under FIRPTA rules
An investment company qualifying under the Internal Revenue Code generally can avoid incurring federal income tax liabilities by distributing all its annual taxable income to shareholders.
Investment company accounting; rescission of APB statements

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