May 03 2008
Definition Of An Investment Company
An investment company is a company or trust that basically uses its capital to invest in other companies. There are generally two types of principal – the closed-end and the open-end. An investment company is a company or trust, such as management companies and unit investment trusts, engaged in the business of investing the pooled funds of small investors in securities appropriate for stated investment objectives. An investment company is a company whose primary business is holding securities of other companies entirely for investment purposes. The investment company basically invests money on behalf of its shareholders and later share the profits and losses.
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