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Investment trusts are companies that invest in the shares of other companies for the purpose of acting as a collective investment.[1] Investors' money is pooled together from the sale of a fixed number of shares a trust issues when it launches. The board will typically delegate responsibility to a professional fund manager to invest in the stocks and shares of a wide range of companies (more than most people could practically invest in themselves). The investment trust often has no employees, only a board of directors comprising only non-executive directors. However in recent years this has started to change, especially with the emergence of both private equity groups and commercial property trusts both of which sometimes use investment trusts as a holding vehicle.[1] Investment trust shares are traded on stock exchanges, like those of other public companies. The share price does not always reflect the underlying value of the share portfolio held by the investment trust. In such cases, the investment trust is referred to as trading at a discount (or premium) to NAV (net asset value).[1] The investment trust sector, in particular split capital investment trusts, suffered somewhat from around 2000 to 2003 after which creation of a compensation scheme resolved some problems.[2][3][4]
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Invest in Your Health by Mike Law
Aug 03, 2005
Copyright 2005 Mike LawWhat if a trusted friend were to tell you about an investment where you could not possibly go wrong...what would be your reaction? And what if there was a virtual mountain of credible information that supported the<...
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