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

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

You can find more information in our publication entitled Investment Clubs and the SEC. To learn more, visit the National Association of Investors Corporation's Web site at www.better-investing.org. This membership organization, also known as “BetterInvesting,” provides education for individuals and members of investment clubs.