What is an investing firm called?

An investment company is also known as “fund company” or “fund sponsor.” They often partner with third-party distributors to sell mutual funds.

What are different types of investment companies?

Types of Investment Companies (Open-end and Closed-end Companies)

• Open-end Investment Companies:
• Closed-end Investment Companies:
• (i) Equity funds:
• (ii) Income funds:
• (iii) Growth funds:
• (iv) Liquid funds:
• (v) Special funds:
• (vi) Index-linked funds:

What are bonds and bond investing?

Consider credit ratings: As noted above, a highly rated, investment grade bond pays a smaller coupon (a lower fixed interest rate) than a low-rated, below investment grade bond. That smaller coupon means the bond has a lower yield, giving you a lower return on your investment.

What are financing companies?

finance company, specialized financial institution that supplies credit for the purchase of consumer goods and services by purchasing the time-sales contracts of merchants or by granting small loans directly to consumers. Some also extend credit for wholesale purchases by retail dealers.

Is an investment fund a company?

“Fund company” is a commonly used term to describe an investment company, which is a corporation or trust engaged in the business of investing the pooled capital of investors in financial securities. This is most often done either through a closed-end fund or an open-end fund (conventional mutual fund).

What are the three types of investment companies?

The federal securities laws categorize investment companies into three basic types:

• Mutual funds (legally known as open-end companies);
• Closed-end funds (legally known as closed-end companies);
• UITs (legally known as unit investment trusts).

What is bond and its types?

There are three main types of bonds: Corporate bonds are debt securities issued by private and public corporations. Investment-grade. These bonds have a higher credit rating, implying less credit risk, than high-yield corporate bonds. High-yield.