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Investments | Definition | Types - Finance Strategists This is due to the Glass-Steagall Act of 1933 that enforces the separation of investment and commercial banks Investment Companies An investment company is a business that invests the pooled capital of investors Their goal is to make investments that grow the investor's asset bases Usually investment companies invest in mutual funds
11 Common Types of Investments and How They Work - SmartAsset The term “equity” covers any kind of investment that gives the investor an ownership stake in an enterprise The most common example is common stocks Other examples are preferred shares, funds that hold stocks (such as exchange-traded funds and mutual funds), private equity and American depositary receipts