Investment company

company that invests its resources in other businesses

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 :Open-End Management Investment Companies (mutual funds) Closed-End Management Investment Companies (closed-end funds)UITs (unit investment trusts)A fourth and lesser-known type of investment company under the Investment Company Act of 1940 is a Face-Amount Certificate Company.
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Noun
1. a financial institution that sells shares to individuals and invests in securities issued by other companies
(synonym) investment trust, investment firm, fund
(hypernym) nondepository financial institution
(hyponym) hedge fund, hedgefund

A firm that that invests the funds of investors in securities appropriate for its stated investment objectives  in return for a management fee. See: also mutual fund.