Open ended investment company (OEIC)

An OEIC is an investment company where shares can be created or cancelled to match demand, in a way similar to the units of a unit trust. The principal difference lies in the fact that there is a 'single price' to which is added the initial charge for purchase, as opposed to unit trusts which always have two prices, the bid price (what you get when you sell back to the managers); and the offer price (what you have to pay when you buy).