Securities Firms

          Accepts and invest individual savings and also facilitate the safe and transfer of securities between investors. Investment companies sell shares in their firms to individuals and others and invest the pooled proceeds in corporate and government securities. One type of investment company, commonly called mutual funds because they can issue an unlimited number of their shares to their investors and use the pooled proceeds to purchase corporate and government securities. Mutual funds grow by investing the funds of their existing investor in securities that will pay or distribute cash and will appreciate in value. Successful mutual funds are able to attract more investor funds and, in turn, invest in more securities. Like depository institutions and contractual savings organizations, investment companies (particularly mutual funds) perform an important financial intermediation function.