Page 5: Conclusion
A stockmarket flotation can help a business to secure funds to help it meet its aims and objectives and to grow. Shareholders can influence decisions made. Ultimately shareholders invest in the stockmarket in the hope of making more money than they would elsewhere. They accept a greater potential risk in the hope of a greater potential return. Shareholders can be either private individuals or large corporations. Choosing to invest in an investment trust can help to spread the risk across a wider range of companies and both private investors and large institutions invest in investment trusts as a way of diversifying risk.
The Association of Investment Trust Companies operates on behalf of investment trusts by:
- raising awareness and promoting benefits of investment trusts to consumers
- providing education, information and training on investment trusts to financial advisors
- supplying statistical information to the marketplace
- lobbying policy makers on behalf of the investment trust sector
- working with member companies to help them realise the potential of the investment trust structure.
At the end of 2004, the investment trust industry managed assets of approximately £60 billion.