Investment trust

Investment trust,

Definition of Investment trust:

  1. Type of investment firm formed for holding securities of other firms, and for obtaining its capital from public issues of shares that are traded on stock exchange. Because investment trusts can issue only a fixed number of shares (traded at a discount on their net present value) which the new investors can buy only from the existing shareholders, they are also called closed-end funds. They differ from unit trusts in that a unit holder is not a shareholder of the unit trust, and a unit is not a share but represents the investors interest in the unit trusts investment portfolio.

Meaning of Investment trust & Investment trust Definition