An Investment Company is a financial institution that pools money from multiple investors to purchase a diversified portfolio of securities, such as stocks and bonds. This allows individual investors to access a broader range of investment opportunities than they might be able to afford on their own. Investment companies are typically structured as either mutual funds or closed-end funds, each with its own investment strategy and management style. These companies are regulated by government agencies, such as the Securities and Exchange Commission (SEC) in the United States, to ensure transparency and protect investors. By investing in an investment company, individuals can benefit from professional management and diversification, which can help reduce risk in their investment portfolios.