A Brief History of Investment Companies

Part of the Innovations in Financial Markets and Institutions book series (IFMI, volume 18)


This chapter provides an overview of the historical evolution of investment companies which date to Europe in the late 1700s. Investment trusts became popular as an investment vehicle in Great Britain during the late 1800s. Subsequently, closed-end funds blossomed in the United States during the 1920s, at which time the first open-end fund appeared. The first hedge fund and exchange-traded fund (ETF) were formed in the late 1940s and 1993, respectively.


Investment trusts Railroad securities Closed-end fund Hedge fund Exchange-traded fund Securities Act of 1933 Registration statement Prospectus Other country fund SPDR A. W. Jones 

Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  1. 1.College of Business and Information ScienceTuskegee UniversityTuskegeeUSA
  2. 2.College of Business AdministrationNortheastern UniversityBostonUSA
  3. 3.University of North FloridaJacksonville FLUSA

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