An investment company can be a corporation, partnership, business trust or limited liability company (LLC) that pools money from investors on a collective basis. The money pooled is invested, and the investors share any profits and losses incurred by the company according to each investor’s interest in the company. Investment companies are categorized into three types: closed-end-funds, mutual funds (or open-end funds) and unit investment trusts (UITs). Each of these three investment companies are registered with and regulated by the Securities and Exchange Commission (SEC) under the Investment Company Act of 1940. Mutual funds are a popular way to diversify an investment portfolio without buying individual stocks,bonds, and other securities. Funds that issue an unlimited number of shared based on investor demand are called open-end-funds, while close-end-funds issue a fixed number of shares at an initial public offering (IPO). Both funds pool investor money to inves...
The Economics and Financial Education Program is an educational program on the fundamentals governing economics and finance, aimed at promoting the development of basic and civic competencies for the general public. Furthermore, it seeks to encourage critical and reflective thinking necessary for making responsible and informed decisions on topics related to economics and finance. This approach aims to support the construction of life projects with quality and sustainability.