investment trust

A closed-end fund regulated by the Investment Company Act of 1940. These funds have a fixed number of shares that are traded on the secondary markets , like corporate stock. The market price may exceed the net asset value per share, in which case shares are selling at a premium. When the market price falls below the ( NAV)/share, shares are selling at a discount. Many closed-end funds are of a specialized nature; the portfolio represents a particular industry or, country. These funds are usually listed on U.S. and foreign exchanges . Bloomberg Financial Dictionary
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A form of collective investment scheme. An investment trust is a public limited company which issues shares to raise funds and then invests the funds in specified securities. When investors wish to realise their investment, they have to sell the shares to other investors in the secondary market or wait for the investment trust to be wound up. This feature gives the investment trust the description of being 'closed-ended'. Once the issue of shares has taken place, the size of the investment trust in terms of number of shares will not be changed. This is in contrast to unit trusts, which are open-ended. Dresdner Kleinwort Wasserstein financial glossary
See also open-ended investment companies. Dresdner Kleinwort Wasserstein financial glossary
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A company whose sole business consists of buying, selling and holding shares. Exchange Handbook Glossary
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Investment trusts are companies whose business is to investment in the securities of a wide range of other companies. Like unit trusts, they pool together the money of many investors in order to invest it in a portfolio of companies which will be more varied than what small investors could achieve on their own.
Investment trusts are closed ended, which means that they have a fixed amount of capital which is divided into shares and then purchased by investors. They pay dividends to shareholders from profits which arise from their investment income.
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A collective investment fund in the form of a listed company which holds a portfolio of securities on behalf of its own shareholders. Because an investment trust is itself a listed company, its shares can be bought and sold in the usual way. London Stock Exchange Glossary

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investment trust inˈvestment ˌtrust noun [countable] FINANCE
a company that invests its capital in Securities ( bonds, shares etc). The value of the company's shares and Dividends depends on the profit made on these investments; = INVESTMENT COMPANY

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investment trust UK US noun [C] (also investment company, investment firm, investment trust company) FINANCE
a company that earns money by investing in other companies: »

The real estate investment trust owns a 75% interest in a residential development in Chicago.


Financial and business terms. 2012.

Look at other dictionaries:

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  • investment trust — see trust Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. investment trust …   Law dictionary

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  • investment trust — or closed end trust Financial organization that pools the funds of its shareholders and invests them in a diversified portfolio of securities. It differs from a mutual fund, which issues units representing diversified holdings rather than shares… …   Universalium

  • Investment trust — A closed end fund regulated by the Investment Company Act of 1940. These funds have a fixed number of shares which are traded on the secondary markets similarly to corporate stocks. The market price may exceed the net asset value per share, in… …   Financial and business terms

  • investment trust — noun a financial institution that sells shares to individuals and invests in securities issued by other companies • Syn: ↑investment company, ↑investment firm, ↑fund • Derivationally related forms: ↑fund (for: ↑fund) …   Useful english dictionary

  • investment trust — UK / US noun [countable] Word forms investment trust : singular investment trust plural investment trusts a company whose business is investing the money that it receives from its customers …   English dictionary

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  • investment trust — /ɪnvɛstmənt ˈtrʌst/ (say investmuhnt trust) noun → unit trust (def. 1) …   Australian English dictionary

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