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Investment |
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InvestmentThe buying of shares in individual companies or units in collective funds (unit trusts, OEICs etc) in order to earn income and to make a capital profit.The placing of money with banks and other financial institutions in order to earn interest.In the UK, the Financial Services Act 1986 defines investments to include shares, debentures and other securities such as government securities, certain options and warrants, unit trusts and other forms of collective investment schemes, futures contracts and some long term life insurance contracts.InvestmentThe creation of more money through the use of capital.Investment Similar MatchesRegistered investment adviserRegistered investment adviserSEC-registered individual or firm that substantiates completion of education and work experience in the field, and pays an annual membership fee. Investment trustInvestment trustA company quoted on the London Stock Exchange which invests its shareholders' funds in the shares of other companies.Points to note about investment trusts are:They enable private investors with limited funds to get diversified share ownership and without incurring heavy dealing costs.They enable investors to get exposure to markets that they may not be able to reach themselves (e.g. to emerging countries). Different trusts also have differing objectives (e.g. growth or income).They enable investors who don't have the skill or inclination to invest directly in companies to get the advantage of professional fund management (although see point below 6)It is easy for investors to drip-feed money into investment trusts over time by using a monthly savings plans.Unlike unit trusts, investment trusts are closed end funds. That is, there is a fixed number of shares in circulation, and the price of those shares is determined like other quoted shares - by supply and demand. This means that IT shares often trade at a discount to their Net Asset value (i.e. the value of their underlying investments) and it also makes IT shares more volatile than unit trust prices.ITs are actively managed funds which try to produce total returns better than the market average. However once management charges are taken into account, they often fail to meet this target. Hence the move by many investors to passive funds - trackers and index funds - which have lower charges. Investment agreementInvestment agreementAn contract specifying the rights and responsibilities of a host government and a corporation in the structure and operation of an investment project. Zero investment portfolioZero investment portfolioA portfolio of zero net value established by buying and shorting component securities, usually in the context of an arbitrage strategy. Direct investmentDirect investmentThe purchase of a controlling interest in a company or at least enough interest to have enough influence to direct the course of the company. Further SuggestionsInvestment clubForeign investment argument for protection Enterprise Investment Scheme local authority investment Real Estate Investment Trust (REIT) Overinvestment Return on investment (ROI) Leveraged investment company open ended investment company Investment Valuation Model (IVM) Foreign Direct Investment Investment Company with Variable Capital investment bond Investment value Regulated investment company Unit Share Investment Trust (USIT) Trade-related investment measure Association of Unit Trusts and Investment Funds Expected return on investment real estate investment trust Direct Foreign Investment Investment opportunity set Target investment mix Passive investment strategy Normal investment practice |
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