open-end investment company
- noun
- /ˈoʊpən ˌɛnd ɪnˈvɛstmənt kəmˈpəni/
- Specialized
:
compañía de inversión abierta
- The open-end investment company allows investors to purchase and redeem shares at any time.
Examples
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Unlike a closed-end fund, an open-end investment company continually issues new shares to meet demand.
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She invested her savings in an open-end investment company to benefit from professional management.
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An open-end investment company allows investors to buy and sell shares at any time.
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Do you think an open-end investment company is a good option for beginners?
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She invested her savings in an open-end investment company to benefit from professional management.
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The open-end investment company allows investors to purchase and redeem shares at any time.
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Unlike a closed-end fund, an open-end investment company continuously issues new shares to meet demand.
Synonyms
2
4.9
A business that manages money from many people and sells shares so they can invest
A company that sells and buys shares directly at their daily price
Antonyms
- Specialized
A company that issues a fixed number of shares which are traded on a stock market
How Liquid
- Specialized
- Specialized
Surface Forms
Morphology
open-end + investment + company
The compound 'open-end' transparently combines 'open' + 'end' to indicate something not closed or fixed, so when attached to 'investment company' a learner can infer a company that remains open to investors (i.e., allows ongoing buying/selling). However, the precise financial mechanism (issuing and redeeming shares at net asset value) is technical and not fully predictable from the constituents, so a B1 learner would likely grasp the general open/ongoing sense but not the full specialised meaning.
Etymology
The noun open-end investment company comes from the image of a jar or tube open at one end where people can put money in or take money out, so the firm can always make new shares or buy shares back. That's why it means a fund where investors can 'buy' or 'sell back' shares at a price based on the value of its assets.