Investments that derive their value from the price of another investment or from anticipated movements in interest rates, currency exchange rates or market indexes.
Term of the Minute
- Investment Trust
A investment trust that usually generates cash flows from one business or operating company, unlike an investment fund, which generates income from a diversified pool or portfolio. The trust holds debt and equity interests of an operating business. Businesses that exhibit these characteristics may opt for a trust structure over a corporate structure to take advantage of tax efficiency.