investment vehicle


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Investment Vehicle

A security or derivative. An investment vehicle may be rigidly structured, as in an asset-backed security, or it may be quite basic, like a stock or bond. One uses an investment vehicle in order to make a profit on the capital one has invested in it. An investment vehicle may involve the purchase of a debt obligation, which entitles one to repayment with interest, or it may involve buying an ownership stake in a business, with the hope that the business will become profitable. Many different investment vehicles exist, and each is subject to greater or lesser regulation in the jurisdiction in which it takes place. Each one has its own risks and rewards; choosing the correct investment vehicles for a portfolio requires a combination of astuteness, knowledge of the market, timing, and good luck.

investment vehicle

A specific investment having attributes that are intended to accomplish certain goals. Examples of investment vehicles include common stock, preferred stock, bonds, options, futures, annuities, and collectibles.
References in periodicals archive ?
To mitigate this issue, the right of first refusal could be limited to an initial holding period, after which the art investment vehicle would be free to sell the piece to third parties without first offering it to the gallery.
After Madoff was arrested by the FBI in a huge fraud case in December 2008, Nomura Securities told Inui that trading in some of the investment vehicles for the financial instruments was suspended, resulting in damage to Inui.
Mazin Al Khatib, managing director at Investcorp, and regional head for the UAE and Saudi Arabia, said: "We are pleased to announce this investment vehicle. We believe this endorses Investcorp's standing as a trusted, respected partner for value-oriented real estate investments in the US.
Qatari-backed investment vehicle Delta Two had put together a pounds 10.6bn proposal to buyout the chain.
The investment vehicle - the largest shareholder in the retailer - first announced its 600p a share offer in July, but the summer's credit crunch has hampered its ability to raise financing.
Last week M&B said a proposed property joint venture with Mr Tchenguiz's investment vehicle R20 may be delayed "until debt markets improve".
The increased shareholding of the pair's investment vehicle, Ellerman, ensured the blue-chip stock continued to hover near record highs, up 18p at 1234p.
Participating in the SR Technics investment is Dubai Aerospace Enterprise, the recently launched investment vehicle for the emirate's global aerospace ambitions headed by former Honeywell Aerospace chief Bob Johnson.
The investment for this transaction will be made through Osaka Gas Energy America Corporation, an investment vehicle of GPI, incorporated in the United States.
Since the persistency of policies included in a life settlement pool typically is 100%, with the investment vehicle paying the premiums required, the issuing insurance company's profitability is likely to be impacted negatively.
"Mutual funds always have been touted as an investment vehicle that allowed the average investor to benefit from cost-effective, professional management," Vitale says.
Investors saving for college need to understand the implications of their choice of investment vehicle and of their portfolio choices.

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