A business entity, either privately or publicly owned, that manages, sells, and markets investment funds to the public. Investment companies can take the form of corporations, partnerships, business trusts, or limited liability companies (LLCs) that pool capital from investors. The pooled funds are invested, and investors share in the profits and losses in proportion to their interest in the company. Investment companies are typically classified into three types: closed-end funds, mutual funds (or open-end funds), and unit investment trusts (UITs). These entities must register under the Securities Act of 1933 and the Investment Company Act of 1940, unless exempt. SPVs often qualify for an exemption and are not required to register with the SEC. See 506(b) Offering, 506(c) Offering, 3(c)(1) exemption, and 3(c)(7) exemption.
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