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What are the different types of investment companies?

Investment companies are categorized into three types: closed-end funds , mutual funds (or open-end funds ), and unit investment trusts (UITs). Each of these three investment companies must register under the Securities Act of 1933 and the Investment Company Act of 1940.

What does an investment company do?

The main business of an investment company is to hold and manage securities for investment purposes, but they typically offer investors a variety of funds and investment services, which include portfolio management, recordkeeping, custodial, legal, accounting, and tax management services.

How do investment companies make money?

Investment companies can be privately or publicly owned, and they engage in the management, sale, and marketing of investment products to the public. Investment companies make profits by buying and selling shares, property, bonds, cash, other funds, and other assets.

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