Investment trust and Legal risk: Difference between pages

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An investment trust is a limited liability company whose sole aim is to invest in securities issued by other entities.
1.  


The risk that transactions or business relationships may have unforeseen adverse legal consequences. 


Investment trusts are similar to unit trusts.
For example, giving rise to additional costs or to the inability to enforce legal rights.


However, unlike a unit trust, the number of shares that can be issued is limited (it is a closed-ended structure).
 
2.
 
The risk that the administration of legal matters may be more costly - or otherwise more burdensome - than foreseen.
 
Legal risk may arise from existing laws and practice, or from changes in relevant laws and practice.




== See also ==
== See also ==
* [[Bid-offer spread]]
* [[Market risk]]
* [[Company]]
* [[Risk]]
* [[Investment]]
* [[Guide to risk management]]
* [[Investment company]]
* [[Investment fund]]
* [[Limited liability]]
* [[Net asset value]]
* [[Open-ended investment company]]
* [[Real estate investment trust]]  (REIT)
* [[Security]]
* [[Trust]]
* [[Undertaking for collective investments in transferable securities]]
* [[Unit trust]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Compliance_and_audit]]
[[Category:The_business_context]]
[[Category:Financial_risk_management]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 08:58, 26 October 2015

1.

The risk that transactions or business relationships may have unforeseen adverse legal consequences.

For example, giving rise to additional costs or to the inability to enforce legal rights.


2.

The risk that the administration of legal matters may be more costly - or otherwise more burdensome - than foreseen.

Legal risk may arise from existing laws and practice, or from changes in relevant laws and practice.


See also