What is an Investment Corporation Company?
2 min read
An investment corporation company is a financial institution that is primarily engaged in investing in securities. Such companies are regulated by the U.S. Securities and Exchange Commission, and must be registered under the Investment Company Act of 1940. To do business in the United States, you must first register as an investment corporation with the SEC. The SEC is responsible for overseeing the investment and operation of these companies. Here’s a brief explanation of what an investment corporation is.
An IBC can also register as a Public Investment Company. In order to register as a Public Investment Company, it must meet certain requirements, including net income, employment of Belizean citizens, and asset value. One such Public Investment Company is Quest for Growth NV PRIVAK, a Belgian-based corporation with fixed capital of €50 million. Its registered office is at Lei 19, PO Box 3000 Leuven, Belgium, and its company number is 0463,541,422.
Another venture capital and private equity firm is SV Investment Corporation. This firm focuses on growth capital and buyouts. It considers investments at early, mid, and late stages. SV Investment Corporation was founded in Seoul, South Korea, and currently has additional offices in Boston, Hong Kong, and Shanghai. Its investments typically range between KRW 1 billion and KRW 5 billion. While these numbers are very large, they still represent a considerable amount of potential.
In addition to being a public company, an investment corporation can be a partnership or a business trust. These companies pool money from investors and then invest it in various types of financial instruments. They distribute profits and losses to investors proportionally to their investment in the company. A client who contributed $1 million would own ten percent of the company. This arrangement allows the company to reap profits based on their investment returns. However, it does not guarantee a profit or a loss.
In general, the price of an investment corporation’s shares is determined by the NAV (net asset value) per share. This is based on the total value of the investment corporation’s assets minus its liabilities. In some cases, the share price is higher than the NAV. The difference between the two prices is called the bid-offer spread. Buying shares at a discount or premium is similar to buying them at a premium.
