Investment Companies: An Overview

Investment Companies

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Investment companies tend to be -

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A. corporations that are managed by separate investment management companies. About 20% of funds, however, are managed by the internal management, rather than by outside companies.

B. corporations that are self-managed. About 30% of funds, however, are managed by separate investment management companies that are chosen by their board of directors based on previous management experience.

C. corporations that are managed by separate investment management companies. The board of directors of an investment company typically choose an investment management company to manage the fund. That company is very often the owner of the investment company.

D. corporations that are managed by separate investment management companies. The board of directors of an investment company typically choose an independent investment management company to manage the fund.

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Explanations

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A. B. C. D.

Investment management companies are corporations that are managed by investment management companies that tend to be their owners. A typical scenario would involve an investment management company forming an investment company, and the board of directors of that investment company proceeding to hire the parent investment management company to manage the new firm.

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