Investment Trusts

Investment Trusts
   Companies which issue shares and then use those funds to invest in other companies. There is a fixed amount of authorized share capital and new shares may not be created on demand. They are known as closed-end publicly quoted funds in the US and investment trusts in the UK. Investment trusts contrast with unit trusts and mutual funds, which both sell and redeem shares on a continuing basis according to investor demand.

Financial and business terms. 2012.

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