Investment company

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Main article: Collective investment scheme

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 United States securities law, there are at least three types of investment companies [1]:

A fourth and lesser-known type of investment company under the Investment Company Act of 1940 is a Face-Amount Certificate Company.

  1. ^ Investment Companies. U.S. Securities and Exchange Commission (SEC). Retrieved on 2006-04-11.
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