open-end investment company

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Open-End Investment Company

Primarily in the United Kingdom, a mutual fund in which the number of shares may be increased or decreased depending on the amount of money invested in the company. This means that the fund's capitalization is not fixed, and changes upon the demand of shareholders. In other words, an open-end investment company issues new stock when people invest in it, and buys back old shares when investors want to be rid of them. The latter is referred to as redeeming one's share of the mutual fund. The value of each share is the net portfolio value divided by the number of shares. In the United States, this investment vehicle is usually called an open-end mutual fund.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

open-end investment company

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Open-end investment company.

An open-end investment company issues and redeems, or buys back, shares in the mutual funds it sponsors on a continuous basis in response to investor demand.

The company pools money it raises by selling shares in a fund and the fund's manager invests in stock, bonds, money market instruments, or a combination of these asset classes to meet the fund's specific objectives.

However, the open-end company may stop selling new shares in a fund if it decides the fund has grown too large to invest additional assets effectively.

In contrast, when a closed-end investment company creates a fund, it issues only a limited number of shares, and those shares trade on the secondary market as shares of stock do.

If you purchase fund shares directly from the open-end investment company, you pay the current net asset value (NAV) per share. You also redeem shares at the NAV that's current at the time you sell. If you buy shares through a broker or other investment professional, you may pay an up-front sales charge, or load, in addition to the NAV.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
It is an Ireland-domiciled Open-Ended Investment Company (OEIC), with assets under management (AUM) of more than GBP1.6 billion as of end-December 2017.
The fund is an Ireland-domiciled Open-Ended Investment Company (OEIC), with assets under management (AUM) of more than GBP1.6 billion as of end-December 2017.
Open-ended investment company Thames River Kingsway Fund Limited's directors announced on Thursday that their resolution to close the Fund in the best interests of shareholders to realise its portfolio of assets and return the net proceeds to shareholders through a compulsory redemption of their share holdings.
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The fund is a sub fund of the umbrella fund, Federated Cash Management Funds (Federated), which is domiciled in the UK as an open-ended investment company regulated by the UK's Financial Conduct Authority and is UCITS-compliant.
The monthly savings figure was calculated on investing in an average unit trust, open-ended investment company or Isa fund returning four per cent a year and the finance on a fixed 12 per cent unsecured loan also over five years.
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An Oeic is an open-ended investment company. Oeics are a relatively new type of investment vehicle, intended to be a more flexible version of a unit trust.
A better option - linked to stock market returns - would be to put money into an unit trust or an OEIC (open-ended investment company) managed fund.