an investment company that issues shares continuously and is obligated to repurchase them from shareholders on demand.
(US & Canadian) an investment trust that issues units for public sale, the holders of which are creditors and not shareholders with their interests represented by a trust company independent of the issuing agency British equivalent unit trust

A company organized for the purpose of making investments. A mutual fund gets its capital stock from private individual investors, who, in effect, allow the mutual fund to decide where to invest their money.


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