investment trust

/ɪnˌvɛstmənt ˈtrʌst/

Other forms: investment trusts

Definitions of investment trust

1. noun

   a financial institution that sells shares to individuals and invests in securities issued by other companies
   synonyms: fund, investment company, investment firm

   types:

   hedge fund, hedgefund

   a flexible investment company for a small number of large investors (usually the minimum investment is $1 million); can use high-risk techniques (not allowed for mutual funds) such as short-selling and heavy leveraging

   mutual fund, mutual fund company, open-end fund, open-end investment company

   a regulated investment company with a pool of assets that regularly sells and redeems its shares

   closed-end fund, closed-end investment company

   a regulated investment company that issues a fixed number of shares which are listed on a stock market

   face-amount certificate company

   a regulated investment company that pays a stated amount to certificate holders on a stated maturity date

   REIT, Real Estate Investment Trust

   an investment trust that owns and manages a pool of commercial properties and mortgages and other real estate assets; shares can be bought and sold in the stock market

   unit investment trust, unit trust

   a regulated investment company consisting of professional managers who issue redeemable securities representing a portfolio of many different securities

   fixed investment trust, nondiscretionary trust

   an investment trust that can buy only those securities listed when the trust was organized

   index fund

   a mutual fund that invests in the stocks that are the basis of a well-known stock or bond index

   type of:

   nondepository financial institution

   a financial institution that funds their investment activities from the sale of securities or insurance