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Income Investment Company

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Dictionary Says

Definition of 'Income Investment Company'

A money management firm whose primary investment goal is to generate income from its investments for its clients. An income investing company typically aims to produce a level of income for its portfolios through investment in bonds and dividend paying stocks. Additionally, preferred shares and other sources of income may be used by fund managers of income investment companies, to generate cash flow.
Investopedia Says

Investopedia explains 'Income Investment Company'

Income generating securities typically involve a lower level of risk for investors, as predictable cash flows reduce such risk levels, while limiting large potential gains and losses to the security`s value. Bond coupons and dividends can be either distributed to fund investors or simply reinvested into the income fund, into other income producing securities.

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