Investment Companies

Investment companies are regulated primarily under the Investment Company Act of 1940 and the rules and registration forms adopted under that Act. Investment companies are also subject to the Securities Act of 1933 and the Securities Exchange Act of 1934. An investment company is a company (corporation, business trust, partnership, or limited liability company) that issues securities and is primarily engaged in the business of investing in securities. In United States securities law, there are three types of investment companies: Mutual funds; Closed-end funds; UITs or unit investment trusts. The investment company invests money on behalf of its shareholders who in turn share in the profits and losses.