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hedge fund vs investment company

investment company vs hedge fund

hedge fund and investment company both are nouns.

Word NounAdjectiveVerbAdverb
hedge fund Yes No No No
investment company Yes No No No
As nouns, investment company is a hypernym of hedge fund; that is, investment company is a word with a broader meaning than hedge fund:
  • hedge fund: a flexible investment company for a small number of large investors (usually the minimum investment is $1 million); can use high-risk techniques (not allowed for mutual funds) such as short-selling and heavy leveraging
  • investment company: a financial institution that sells shares to individuals and invests in securities issued by other companies
Other hypernyms of hedge fund include fund, investment firm, investment trust.
hedge fund (noun) investment company (noun)
a flexible investment company for a small number of large investors (usually the minimum investment is $1 million); can use high-risk techniques (not allowed for mutual funds) such as short-selling and heavy leveraging a financial institution that sells shares to individuals and invests in securities issued by other companies
Difference between hedge fund and investment company

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