Definition of investment trust company
Investment trust company:
Investment Trust Companies are companies which exist to invest in the shares of other companies. They are used by small investors to gain easy access to a spread of investments. So instead of investing in one company, the investor gets indirect holdings in a number of companies through the ITC. ITCs are known as closed ended funds because they can only take in more funds by issuing new shares, unlike unit trusts, which are open ended and can expand at any time by taking in new money and issuing new units.
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