Define: Investment Company

UK Accounting Glossary

Definition: Investment Company



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Full Definition of Investment Company


An investment company is a firm whose business is to invest in securities. An investment company is also known as a mutual fund, investment fund, or investment trust. An investment company pools together funds from individual investors and purchases securities, according to the investment objectives stated in its charter. To take part in the investment company, individuals buy shares in it, which go toward the purchase of securities. For individuals, the advantage of investing through an investment company is access to a wide range of possible stocks, bonds, and other securities. The investment company charges fees for its services, whether periodically or when investors buy or sell shares. Any earnings made by the company are then passed to the investors.


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Investment Company. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. March 29, 2020 https://payrollheaven.com/define/investment-company/.
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Investment Company. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/investment-company/ (accessed: March 29, 2020).
American Psychological Association (APA):
Investment Company. PayrollHeaven.com. Retrieved March 29, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/investment-company/

Definition Sources


Definitions for Investment Company are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th February 2020.