Management Investment Company


DEFINITION of 'Management Investment Company'

A formal name for a company that sells and manages a portfolio of securities. A management investment company is one of the three fundamental types of investment companies, the other two being unit investment trusts and face-amount certificate companies. Management investment companies allow investors to pool their capital with that of other investors in order to purchase professionally-managed groups of diversified securities.

BREAKING DOWN 'Management Investment Company'

A management investment company is headed by a CEO, a team of officers and a board of directors. These company leaders choose the types of investment products the company will offer, define the fund's objectives and select the people who will run each fund. Management investment companies are subject to rules set forth in the Investment Company Act of 1940. Registered management investment companies are also subject to the Securities Exchange Act of 1934.

  1. Investment Company Act Of 1940

    Created in 1940 through an act of Congress, this piece of legislation ...
  2. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  3. Face-Amount Certificate Company

    A type of investment firm that issues debt securities to its ...
  4. Unit Investment Trust - UIT

    An investment company that offers a fixed, unmanaged portfolio, ...
  5. Securities Exchange Act Of 1934

    The Securities Exchange Act of 1934 was created to provide governance ...
  6. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
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