| An investment firm is an organization (limited | | | | such as equity funds, money-market funds, hedge |
| liability firm, business concern, partnership or | | | | funds and open-end funds. Mutual fund companies |
| corporation) that issues investment securities and | | | | are the kind of investment firms where financial |
| is mainly engaged in the dealing of investment | | | | manager trades in the firm's primary securities, |
| securities. The performance of an investment | | | | actual investment profits, bonus and |
| firm depends on the performance of the assets | | | | corresponding losses. |
| and other securities that it owns. | | | | Unlike a mutual fund company, the Unit |
| In general, an investment firm is termed as a | | | | Investment Trusts is a United States investment |
| financial institution, which sells stocks and shares | | | | firm, which has fixed security portfolios. These |
| to individuals and invests currency in securities of | | | | portfolios are made for some specific period. A |
| other companies. By putting money in aid of their | | | | Unit Investment Trust (UIT) does not have an |
| shareholders, an investment firm is liable to their | | | | investment adviser, corporate officer or board of |
| gains and losses. Investment firms are also | | | | directors, to offer advice or guidelines during the |
| termed as Investment Companies and are very | | | | lifespan of the trust. |
| much correlated to the Investment Bank | | | | A closed-end fund implies collective pool of assets |
| concepts. | | | | but with limited number of stocks or shares that |
| Investment Banks assist government and private | | | | cannot be generated until the funds liquidate. |
| bureaus in respect of raising money through issue | | | | Overview: |
| of securities and selling them into the capital | | | | Each kind of investment firm has its own |
| market. They also assist the private and public | | | | distinctive features. For instance, UIT and mutual |
| financial corporations in arranging funds from the | | | | fund shares are exchangeable. Meaning, while |
| primary market with the assistance of both debts | | | | investors desire to sell their shares, they can |
| and equities. In addition, they offer valuable | | | | easily sell them back to the Trust or Fund |
| guidance and tips in acquisitions and merger of | | | | Company or to brokers acting on behalf of Trust |
| firms and other financial dealings. | | | | or Fund Company at the approximate Net Asset |
| U.S. securities of SEC (Securities and Exchange | | | | Value. On the contrary, close-end fund shares are |
| Commission) law classify three different kinds of | | | | not exchangeable. Thus, those investors who |
| investment firms namely Mutual Funds, UIT (Unit | | | | want to sell shares can sell them to the |
| Investment Trusts) and Closed-End Investment | | | | secondary market investors at a predetermined |
| Company. | | | | price by the market. Moreover, there are |
| Kinds of Investment Firms - In Brief: | | | | differences within each kind of investment firms in |
| Mutual fund companies focus on mutual funds that | | | | terms of exchange-traded funds, bond funds, |
| are collective pool of assets. They bring huge | | | | stock funds, money market funds, interval funds |
| money from investors and invest in | | | | and index funds. Investment firms such as Merrill |
| share-market, bonds, equities, money market | | | | Lynch, ING Investments and JP Morgan are some |
| securities and instruments. There are different | | | | of the renowned investments firms all round the |
| categories of mutual funds available for investors | | | | world. |