Investment Club

DEFINITION of 'Investment Club'

A group of people who pool their money to make investments. Usually, investment clubs are organized as partnerships and after the members study different investments, the group decides to buy or sell based on a majority vote of the members. Club meetings may be educational and each member may actively participate in investment decisions.

BREAKING DOWN 'Investment Club'

The advantages to investment clubs are that they are the easiest and most economical entities to form, operate and maintain, while the club's income and losses are passed through to its partners and are reported on their individual tax returns. Investment clubs are also a terrific way to learn, make valuable contacts, and meet people interested in the same topics. Some clubs have made fortunes for their members.

RELATED TERMS
  1. Savings Club

    A non-incorporated group that has opened some type of savings ...
  2. Advertising Club Of New York

    The main organization for communications professionals in New ...
  3. Member Payment Dependent Note

    A note that is issued by Lending Club. The income from these ...
  4. Forex Club

    A national association of wholesale foreign exchange professionals ...
  5. Paris Club

    An informal group of creditor nations whose objective is to find ...
  6. Club Deal

    A private equity buyout or the assumption of a controlling interest ...
Related Articles
  1. Personal Finance

    Investment Clubs Pool Assets, Expertise

    Forming a network of other like-minded investors and professionals can bolster returns.
  2. Active Trading

    The Benefits Of An Investment Club

    Don't want to be a passive investor? Discover how investment clubs allow you to take control of your portfolio.
  3. Investing Basics

    What You Learn at University Investment Clubs

    University investment clubs are where Wall Street and the classroom intersect.
  4. Personal Wealth & Private Banking

    Finding the Right Yacht Club: A Quick Guide

    Hello, Commodore! Everything you ever wanted to know about these gathering sites for boat owners and renters, and how to do a shipshape search for one.
  5. Personal Wealth & Private Banking

    The Best Yacht Clubs in New York

    A manifest of the best gathering places for the maritime crowd in New York.
  6. Personal Wealth & Private Banking

    When It Pays to Join a Golf Club

    If you play enough golf, it might just be time to consider joining a golf club.
  7. Personal Wealth & Private Banking

    5 of the Best Yacht Clubs in San Francisco

    There are lots of avid sailors in the City by the Bay and plenty of clubs where they can gather, berth their yachts and participate in races.
  8. Wealth Management

    4 of the Best Yacht Clubs in San Diego

    If you want to hang out with the man credited with boosting the profile of the America’s Cup, head to this California coastal city.
  9. Economics

    What is the Paris Club?

    The Paris Club is an informal group of nations that meet to find solutions for problems facing debtor nations.
  10. Personal Wealth & Private Banking

    Five of the Best Yacht Clubs in Seattle

    Seattle doesn’t have a year-round sailing environment, but there are lots of opportunities for boating enthusiasts, from modestly priced to high-end clubs.
RELATED FAQS
  1. How can I find an investment club in my area?

    Investment clubs have been around for several decades and are simply groups of people who get together to invest. While the ... Read Answer >>
  2. Can you use your Walmart credit card at Sam's Club?

    Learn how you can use a Walmart credit card at Sam's Club. Sam's Club also takes a variety of other payments and has many ... Read Answer >>
  3. Why is Manchester United (MANU) carrying so much debt?

    Learn how the Glazer family incurred substantial debt for its takeover of Manchester United, and understand how that debt ... Read Answer >>
  4. How is deferred revenue treated under accrual accounting?

    Learn deferred revenue and its treatment under accrual accounting and why various revenue recognition methods result in different ... Read Answer >>
  5. Can a Limited Liability Company (LLC) issue stock?

    Learn about a limited liability company, or LLC, and if it is able to issue stock. Understand the benefits of an LLC, both ... Read Answer >>
  6. How does market share affect a company's stock performance?

    Discover how market share affects a company's performance. Market share is important in cyclical industries and not important ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center