An investment company is a financial institution principally engaged in holding, managing and investing securities . These companies in the United States are regulated by the U.S. Securities and Exchange Commission and must be registered under the Investment Company Act of 1940 . Investment companies invest money on behalf of their clients who, in return, share in the profits and losses.
12-563: 53°24′36″N 2°59′47″W / 53.4099°N 2.9965°W / 53.4099; -2.9965 The Beetham Organisation is a privately owned property development and investment company based in Liverpool , UK . It was founded by Hugh Frost as Oastdren Investments in 1985. Its primary focus is city-centre real estate, specialising in hotel, residential and office projects. As of 2005, Hugh Frost owned 67%, his sons Stephen Beetham (born Stephen Frost) owned 27% and Simon Frost held
24-459: Is a Dutch-American investor and professor of finance. He was hired at Yale University in 1990. In 2012, he was appointed the Robert B. and Candice J. Haas Professor at Yale School of Management and Deputy Director for International Financial Center at Yale. His work has traced the history of mutual funds through 18th century Netherlands. The International Financial Center at Yale also holds
36-790: The Investment Company Act 1940 is private investment companies , which are simply private companies that make investments in stocks or bonds, but are limited to under 250 investors and are not regulated by the SEC. These funds are often composed of very wealthy investors. Investment companies that choose to register under the Investment Company Act of 1940, or any investment fund that is subject to similar regulation in another jurisdiction are considered regulated funds. This provides certain protections and oversight for investors. Regulated funds normally have restrictions on
48-670: The Securities Act of 1933 and the Investment Company Act of 1940 . A fourth and lesser-known type of investment company under the Investment Company Act of 1940 is a Face-Amount Certificate Company . Investment companies should not be confused with investment platforms such as eToro , Robinhood , Fidelity and E-Trade, which are digital services or tools that enable investors to access and manage various financial instruments such as stocks, bonds, mutual funds, exchange-traded funds (ETFs), options, futures, cryptocurrencies, and real estate. A major type of company not covered under
60-886: The 1930s like the 1933 Securities Act restored investor confidence. A number of innovations then led to steady growth in investment company assets and accounts over the decades. The Investment Company Act of 1940 regulates the structure and operations of investment companies. It requires registration and disclosure for companies with over 100 investors. The act governs investment company capital, custody of assets, transactions with affiliates, and fund board duties. The Investment Advisers Act of 1940 regulates investment advisers to registered funds and other large advisers. It establishes registration, recordkeeping, reporting and other requirements for advisers. The Securities Exchange Act of 1934 regulates trading, buying and selling of securities including investment company shares. It governs broker-dealers who sell fund shares. In 1938, it authorized
72-827: The United States, regulated funds include not only open-end mutual funds and exchange-traded funds, but also unit investment trusts and closed-end funds. In Europe, regulated funds encompass UCITS (Undertakings for Collective Investment in Transferable Securities) like ETFs and money market funds, as well as alternative investment funds known as AIFs. In many countries, regulated funds may also include institutional funds limited to non-retail investors, funds offering principal guarantees, and open-end real estate funds investing directly in property assets. The first investment trusts were established in Europe in
84-865: The advantages of diversification previously only available to the wealthy. The Scottish American Investment Trust , founded in 1873, was one of the first funds to invest in American securities and help finance the post- Civil War U.S. economy. This established a link between British fund models and U.S. markets. The first mutual fund, or open-end fund, was introduced in Boston in 1924 by the Massachusetts Investors Trust. This fund introduced innovations like continuous share offerings, share redemptions, and clear investment policies. The 1929 stock market crash and Great Depression temporarily hampered investment funds. But new securities regulations in
96-440: The creation of self-regulatory organizations like FINRA to oversee broker-dealers. The Securities Act of 1933 requires public securities offerings, including of investment company shares, to be registered. It also mandates that investors receive a current prospectus describing the fund. This article about investment is a stub . You can help Misplaced Pages by expanding it . Geert Rouwenhorst K. Geert Rouwenhorst
108-590: The late 1700s by a Dutch trader who wanted to enable small investors to pool their funds and diversify. This is where the idea of investment companies originated, as stated by K. Geert Rouwenhorst . In the 1800s in England, "investment pooling" emerged with trusts that resembled modern investment funds in structure. For example, the Foreign and Colonial Government Trust formed in London in 1868 provided small investors
120-494: The oldest non-defaulted bond in the world. His work with Gary B. Gorton circa 2012 has been influential in establishing the idea of commodities as an asset class and has fueled the rise of commodity indices and exchange-traded funds . He has studied the relative performance of futures and the underlying commodities. Rouwenhorst is also a partner at SummerHaven Investment management, a smaller firm which focuses on commodities . This biography of an American economist
132-703: The remaining 6% of the company. Stephen changed his name from Frost to Beetham after the sect into which he had been born, the Plymouth Brethren . Beetham is an ancestral family name; the name of the business was changed soon afterwards. Their portfolio includes; Investment company Investment companies are designed for long-term investment, not short-term trading . Investment companies do not include brokerage companies, insurance companies, or banks. In United States securities law , there are at least five types of investment companies: In general, each of these investment companies must register under
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#1732783084215144-573: The types and amounts of investments the fund manager can make. Typically, regulated funds may only invest in listed securities and no more than 5% of the fund may be invested in a single security. The majority of investment companies are mutual funds, both in terms of number of funds and assets under management. The International Investment Funds Association defines regulated funds as open-end collective investment vehicles that are subject to substantive regulation. Open-end funds allow investors to purchase new shares or redeem existing shares on demand. In
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