investment company

investment company
investment company see company

Merriam-Webster’s Dictionary of Law. . 1996.

investment company
n.
A company primarily in the business of trading securities, using its capital to invest in other companies.

The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. . 2008.


investment company
USA
A company that issues securities to investors and also does any of the following:
• Holds itself out as engaging primarily in primarily the business of investing, reinvesting or trading in securities.
• Engages in the business of issuing face amount certificates of the installment type.
• Engages in the business of investing, reinvesting, owning, holding or trading in securities, and owns investment securities having a value exceeding 40% of the value of the issuer's total assets (exclusive of US government securities and cash items) on an unconsolidated basis.
(Section 3(a)(1), Investment Company Act of 1940, as amended (ICA)).
Investment companies are most often set up as either closed or open-ended funds that are also known as mutual funds. Most investment companies are registered with the SEC under the ICA.
Some companies that do not hold themselves out to be investment companies are deemed to be investment companies because more than 40% of their assets consists of investment securities. These companies usually do not register with the SEC because they organize themselves to fall within exemptions from the definition of investment company.
Related terms

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • investment company — or investment trust n. a company or trust that invests in diverse securities with funds obtained through the sale of its own shares: see also CLOSED END, OPEN END (sense 1) …   English World dictionary

  • investment company — noun a financial institution that sells shares to individuals and invests in securities issued by other companies • Syn: ↑investment trust, ↑investment firm, ↑fund • Derivationally related forms: ↑fund (for: ↑fund) …   Useful english dictionary

  • Investment company — 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… …   Wikipedia

  • investment company — A firm that that invests the funds of investors in securities appropriate for their stated investment objectives in return for a management fee. See also: mutual fund. Bloomberg Financial Dictionary * * * investment company investment company ➔… …   Financial and business terms

  • 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.,… …   Investment dictionary

  • investment company — investicinė bendrovė statusas Aprobuotas sritis kolektyvinio investavimo subjektų veikla apibrėžtis 1. Akcinė bendrovė, kurios akcijos išleidžiamos ir išperkamos Lietuvos Respublikos kolektyvinio investavimo subjektų įstatymo pakeitimo įstatymo… …   Lithuanian dictionary (lietuvių žodynas)

  • Investment Company Act of 1940 — Investment Company Act of 1940, as amended (ICA) USA The Investment Company Act of 1940 (15 U.S.C. §§ 80a 1 − 80a 64) regulates mutual funds and other companies that engage primarily in investing, reinvesting, and trading in securities, and whose …   Law dictionary

  • Investment Company Act of 1940, as amended — (ICA) USA The Investment Company Act of 1940 (15 U.S.C. §§ 80a 1 − 80a 64) regulates mutual funds and other companies that engage primarily in investing, reinvesting, and trading in securities, and whose own securities are offered to the… …   Law dictionary

  • Investment Company Act — of 1940, as amended (ICA) USA The Investment Company Act of 1940 (15 U.S.C. §§ 80a 1 − 80a 64) regulates mutual funds and other companies that engage primarily in investing, reinvesting, and trading in securities, and whose own securities are… …   Law dictionary

  • investment company — company that invests its resources in other businesses …   English contemporary dictionary

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”