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.

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