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Investment company

Any company which uses its funds to acquire shares or securities rather than engage in business on its own account. They are usually referred to as investment trusts, but theoretically this is a misnomer, as directors of investment companies are not legally trustees and there is no trust instrument. True, securities are often held on trust for the benefit of others, but this is a different matter and takes the form of a trust proper rather than that of a company.

Reference: The Penguin Business Dictionary, 3rd edt.