Investment Trusts
An Investment Trust is simply a company that has been set up to invest in shares of other companies. By buying shares in an investment company, the investor is in effect spreading the risk that would normally by associated with a single share investment because the value of the Investment Company's shares are related to the spread of investments it is making.
From a tax perspective, investing in investment trusts is treated the same as investing in shares.
The price of shares in an Investment Trust will be influenced by supply and demand.
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