investment trust
Definition
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 investor's interest in the unit trust's investment portfolio.
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