Investment Company

03/04/2013

28/01/2013

An investment company is a company whose main business is holding securities of other companies purely for investment purposes. The investment company invests money on behalf of its shareholders who in turn share in the profits and losses.
In United States securities law, there are at least four types of investment companies:[1]
Open-End Management Investment Companies (mutual funds)
Closed-End Management Investment Companies (closed-end funds)
Hedge Funds
UITs (unit investment trusts)
A fifth and lesser-known type of investment company under the Investment Company Act of 1940 is a Face-Amount Certificate Company.
Also popular are private investment funds, which are simply private companies that make investments in stocks or bonds, but are limited to under 100 investors, are private and are not regulated by the SEC. These funds are often composed of very wealthy investors.