What do you call it when someone gets X number of people who all want to invest in Y company; so u create a corp where equity is spread among them, and this corp invests in X company?

Sounds like an investment company:

An investment company is a corporation or trust engaged in the business of investing the pooled capital of investors in financial securities. This is most often done either through a closed-end fund or an open-end fund (also referred to as a mutual fund). In the U.S., most investment companies are registered with and regulated by the Securities and Exchange Commission (SEC) under the Investment Company Act of 1940.

  • You may be thinking of "holding company"
    – Fattie
    Dec 9, 2020 at 13:26

2 Answers 2


Perhaps this might be what you're after. For the USA, from Wikipedia:

Investment clubs are generally formed as general partnerships, but could also be formed as limited liability companies, limited liability partnerships, corporations, or sole proprietorship that transfer real estate assets to a group living trust (similar to a family trust). While an investment club could incorporate, the double tax treatment on corporate distributions makes the corporate structure less desirable than a partnership except in the case when a C Corporation pays out qualified dividends after deducting allowable expenses. Typically, a general partnership does not generate any tax liability on its own; instead, any tax liability is passed through to members each year. However, income taxes are generally much higher than taxes on qualified dividends.

In order to understand the legal structure that an investment club should choose, the club should first understand its club type. Each of the different club types will have different legal requirements as well as different reporting requirements. Typically, the SEC only requires reporting for investment groups with over 100 members, which is reclassified as an investment group, not an investment club. Publicly held offerings like a Real Estate Investment Trust as known as a REIT also have additional reporting requirements.

  • Try this: What would I form if I and 4 friends want to invest a few millions in spaceX?
    – Outsider
    Dec 9, 2020 at 0:45
  • 1
    You and 4 friends is an investment club. If the amount invested is a sizable amount (a few millions), then member protection would be desirable and a legal entity would be desirable (see the first sentence in my answer). You'd have to consult a lawyer to determine which legal entity best met the needs of the members. Dec 9, 2020 at 0:49

This is a somewhat US-centric answer.

The above differ by the how/what/why of their investment.

If you are looking for a generic term, I think holding company could work.

  • Many of these definitions come close but don't perfectly match what I'm looking for. Maybe it does not exist? At leased formally?
    – Outsider
    Dec 9, 2020 at 0:31
  • @Outsider Are you looking for the name of a US-specific legal entity type that has the properties you describe, or are you looking for a generic term in English?
    – Flux
    Dec 9, 2020 at 0:33
  • generic term in english
    – Outsider
    Dec 9, 2020 at 0:37
  • @Outsider I am unable to answer your question. I call this kind of company a "holding company", but this usage might vary by region. I am not sure.
    – Flux
    Dec 9, 2020 at 0:43
  • 1
    @Outsider I would say a limited liability company (LLC) or a partnership, but those are business entities that could be used for far more than just investing in SpaceX. I defer to the other (upcoming) answers.
    – Flux
    Dec 9, 2020 at 0:48

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