The examples and perspective in this US-centric article may not represent a worldwide view of the subject. You may improve this US-centric article, discuss the issue on the talk page, or create a new US-centric article, as appropriate.(March 2022) (Learn how and when to remove this template message)
An investment company is a financial institution principally engaged in holding, managing and investing securities. These companies in the United States are regulated by the U.S. Securities and Exchange Commission and must be registered under the Investment Company Act of 1940. Investment companies invest money on behalf of their clients who, in return, share in the profits and losses.
Investment companies are designed for long-term investment, not short-term trading.
Investment companies do not include brokerage companies, insurance companies, or banks.
In general, each of these investment companies must register under the Securities Act of 1933 and the Investment Company Act of 1940.[2] A fourth and lesser-known type of investment company under the Investment Company Act of 1940 is a Face-Amount Certificate Company. A major type of company not covered under the Investment Company Act 1940 is private investment companies, which are simply private companies that make investments in stocks or bonds, but are limited to under 250 investors and are not regulated by the SEC.[3] These funds are often composed of very wealthy investors.
investment, company, examples, perspective, this, centric, article, represent, worldwide, view, subject, improve, this, centric, article, discuss, issue, talk, page, create, centric, article, appropriate, march, 2022, learn, when, remove, this, template, messa. The examples and perspective in this US centric article may not represent a worldwide view of the subject You may improve this US centric article discuss the issue on the talk page or create a new US centric article as appropriate March 2022 Learn how and when to remove this template message Main article Collective investment scheme An investment company is a financial institution principally engaged in holding managing and investing securities These companies in the United States are regulated by the U S Securities and Exchange Commission and must be registered under the Investment Company Act of 1940 Investment companies invest money on behalf of their clients who in return share in the profits and losses Investment companies are designed for long term investment not short term trading Investment companies do not include brokerage companies insurance companies or banks In United States securities law there are at least three types of investment companies 1 Open End Management Investment Companies mutual funds Face amount certificates companies very rare Management companies Closed End Management Investment Companies closed end funds UITs unit investment trusts only issue redeemable units In general each of these investment companies must register under the Securities Act of 1933 and the Investment Company Act of 1940 2 A fourth and lesser known type of investment company under the Investment Company Act of 1940 is a Face Amount Certificate Company A major type of company not covered under the Investment Company Act 1940 is private investment companies which are simply private companies that make investments in stocks or bonds but are limited to under 250 investors and are not regulated by the SEC 3 These funds are often composed of very wealthy investors See also EditHolding company Investment trust Private equity firmReferences Edit Investment Companies U S Securities and Exchange Commission SEC Retrieved 2006 04 11 Lemke Lins and Smith Regulation of Investment Companies 4 01 Matthew Bender 2016 ed Investment Clubs and the SEC sec gov Modified January 16 2013 This article about investment is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title Investment company amp oldid 1106289895, wikipedia, wiki, book, books, library,
