What is an investment trust company?
Investment trust company or investment company is a type of business organization that invests associated capital in financial securities such as stocks and bonds or physical assets such as commercial and residential real estate or commodities. Companies for investment trust are established and managed according to the rules set out in the legislative acts of national governments in which they are registered. In the US, the 1940 Investment Company Act defines and divides the regulation of investment trust companies into three categories: Certificate Certificate Certification Company; Unit investment funds and administration companies that include mutual funds. Companies for investment trust have preferential tax treatment because of their central role in the process of creating capital and investment, but are also generally required to regularly distribute the vast majority of their investment income to shareholders.
usually administered by the Non-Spole CouncilIn investment trust companies are in business in the field of establishing various types of investment funds, mutual funds of open funds, funds traded on the stock exchange (ETF) and credible investment in real estate (REIT). The ability to use various financial and investment techniques and strategies differ. Some may use the lever effect by issuing debt securities while others are forbidden. Open-end mutual funds release new shares as new investors with capital, while the number of funds of closed funds remains solid.
Investment Trust Company's funds are publicly or privately sold and sold to investors. Are often listed and traded on stock exchanges. Shares can then be purchased and sold in these secondary markets with a discount or bonus to the actual value of the investment portfolio of the minus management fees and expenditure. This is known as fONDS net asset value (NAV).
Investment Trust Companies are selected and can directly employ a professional fund or portfolio administrators to manage the company's funds. The administrators of the Board of Directors and funds are compensated by some of the different ways as shown in the fund chart. Common forms of compensation include receiving the percentage of net funds invested in funds, the percentage of investment revenue or their combination. Investment Trust Company funds usually provide the Clearing, settlement, and other administrative services for which they also charge a fee.
In the US, investment credible companies are regulated by securities and stock exchange, as stipulated by the 1940 Investment Company Act. This status was updated by the passage of the DodD-Frank Act. These laws apply almost to all types of investment companies. For example, Hedge Funds and Private Capital Funds areexempt from Oversight coverage and regulation.