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Glite Dictionary
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RIC

RIC

1 9.4
A US investment company that gives most income directly to shareholders
  • noun
  • /rɪk/
  • Formal
: sociedad de inversión regulada
  • The mutual fund registered as a RIC to receive favorable tax treatment for its shareholders.

Examples

  • To qualify as a RIC, the company must meet specific IRS requirements each year.

  • Investors often choose a RIC because it allows income to be distributed without double taxation.

  • The RIC allows investors to benefit from tax advantages.

  • Many RICs focus on real estate investments.

  • Investors often prefer a RIC due to its ability to distribute income directly to shareholders without tax penalties.

  • A RIC must adhere to strict IRS regulations to maintain its status as a tax-efficient investment option.

  • When choosing a RIC, many look for funds that focus on industries like technology or healthcare, maximizing potential returns.

Synonyms

investment company
vsRIC
  • Specialized
5 3.0

A business that collects money from many people and buys shares or bonds for them

is a regulated US vehicle that meets tax rules to pass income to investors
investment trust
vsRIC
  • UK
4 5.1

A company that sells shares and invests the money in many other companies

is a regulated US vehicle that passes income directly to investors

Surface Forms

RIC singular
RICs plural

Etymology

RIC stands for regulated investment company, meaning a company 'regulated' so it can pass income to shareholders, so the name reminds you it is a fund with special tax rules that lets income go straight to investors.