Open Ended Investment Company

An open ended investment company is an investment company or in other words it’s an investment fund that openly invests in other companies. The ability of the open ended investment company is that it can invest in different companies with different modes and methods such as an open ended investment company can invest differently regarding the size and the criteria of investment. The shares of an open ended investment company are listed on London Stock Exchange and the market price and the value of the shares depend upon the underlying assets of the company. The shares of open ended investment company don’t have any quotes and the bids so that the selling and the purchasing price of the shares of such company is the same.

These companies are called as open ended companies because they can adjust the number of shares in the investment funds of the other companies by eliminating or adding shares to the investment for the company in question. For example when the shares are issued to the company they are added to the fund hence they are added as an investment in other company. On the other hand when the shares are eliminated the money is paid out from the investment fund of the company. These kinds of funds include a mix of different kinds of investment strategies such as income and growth investment strategies,  small cap strategy and large cap strategy that helps in open ended investment company to invest in other companies.


Other Related Accounting Articles:

Recommended Books !


Download E accounting book in MS-word format for just 20 $ - Click here to Download

Leave a Reply

Your email address will not be published. Required fields are marked *