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 which case it is considered at a "premium." When the market price falls below the NAV/share, it is at a "discount." Many closed-end funds are of a specialized nature, with the portfolio representing a particular industry, country, etc. These funds are usually listed on US and foreign exchanges. The New York Times Financial 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 — 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 …   Financial and business terms

  • 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 — 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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