Investment Company

AAA

DEFINITION of 'Investment Company'

A corporation or trust engaged in the business of investing the pooled capital of investors in financial securities. This is most often done either through a closed-end fund or an open-end fund (also referred to as a mutual fund). In the U.S., most investment companies are registered with and regulated by the Securities & Exchange Commission under the Investment Company Act of 1940.

Also known as "fund company" or "fund sponsor".

INVESTOPEDIA EXPLAINS 'Investment Company'

Investment companies are business entities, both privately and publicly owned, that manage, sell, and market funds to the public. They typically offer investors a variety of funds and investment services, which include portfolio management, recordkeeping, custodial, legal, accounting and tax management services.

RELATED TERMS
  1. Investment Company Act Of 1940

    Created in 1940 through an act of Congress, this piece of legislation ...
  2. Management Investment Company

    A formal name for a company that sells and manages a portfolio ...
  3. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  4. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  5. Diversification

    A risk management technique that mixes a wide variety of investments ...
  6. Pipeline

    1) An investment company whose purpose is to collect investment ...
Related Articles
  1. Should You Follow Your Fund Manager?
    Mutual Funds & ETFs

    Should You Follow Your Fund Manager?

  2. Hedge Funds Hunt For Upside, Regardless ...
    Options & Futures

    Hedge Funds Hunt For Upside, Regardless ...

  3. Do Focused Funds Provide a Better Outlook?
    Mutual Funds & ETFs

    Do Focused Funds Provide a Better Outlook?

  4. Mutual Fund Basics Tutorial
    Mutual Funds & ETFs

    Mutual Fund Basics Tutorial

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center