Investment Company

Investment Company A firm which uses, not its own money, but the pooled funds of individuals, to buy and sell shares for collective benefit. An open – ended investment company is one which keeps accepting new investors and redeems the funds of those who wish to opt out, whereas a closed – ended investment company has a fixed number of investors and a fixed number of outstanding shares which are traded in the stock exchange. The Unit Trust is an open – ended investment company, whereas Mastershares or Canshares are close – ended.

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