An investment company refers to an enterprise organization that collects a large amount of funds and makes a reasonable combination according to its investment objectives. Investment companies in a broad sense include trust and investment companies, finance companies, investment banks, fund companies, commercial banks, investment departments of insurance companies and other financial institutions, as well as various enterprises engaged in property rights investment and securities investment. In a narrow sense, an investment company refers to the main body of a legal person investment fund and is a profit-making joint stock limited company established according to law. Investors become shareholders by buying shares in the company, and the shareholders' meeting chooses an investment management company to manage the company's assets. Its business scope includes buying stocks and bonds of enterprises, participating in the establishment and business activities of enterprises, providing medium and long-term loans, operating domestic and foreign government bonds and fund management. The main sources of funds are issuing their own bonds, stocks or fund units, obtaining loans from other banks and accepting entrusted deposits.
As a company that collects investors' capital and conducts professional investment management to spread risks and improve returns, investment companies play an important role in the securities market: ① As an important investment method, it can improve the investment structure of the securities market and promote the deepening of financial reform. Nowadays, the penetration of investment funds into the securities market far exceeds that of other financial commodities. As an institutional investor, it is conducive to the stability of the securities market and the orderly development of the market.