U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

Investment Clubs

An investment club is a group of people who pool their money to make investments. Investment clubs are usually organized as partnerships. Each member actively participates in investment decisions. After the members study different investments, the group decides to buy or sell based on a majority vote of the members. Club meetings focus on education and each member actively participates in investment decisions.

Investment clubs usually do not have to register with the SEC, or register the offer and sale of their own membership interests. But since each investment club is unique, each club should decide if it needs to register and comply with the securities laws.

You'll find answers to many common questions about investment clubs in our publication entitled Investment Clubs and the SEC. To learn more, visit the National Association of Investors Corporation's website at www.better-investing.org. This membership organization provides education for individuals and members of investment clubs.


We have provided this information as a service to investors.  It is neither a legal interpretation nor a statement of SEC policy.  If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in securities law.