WHAT The Investment Club Partnership Agreement is designed for two or more individuals to form a club to invest in stocks and other marketable securities. WHY Investment clubs can be a fun way to socialize, learn about investing and, hopefully, make a little money. These clubs are usually formed by friends who take turns researching companies and making investment decisions.
Some clubs spend years together and make considerable profits.
If you are new to investing or investment clubs, there are many good books to read to help you learn more. Most investment clubs are formed as partnerships. This vehicle is convenient, easy to form and helps to ensure that each member has a voice in club affairs. Although some clubs choose not to, it's best for the members of the club to have a written partnership agreement. When the agreement is written, the members are better able to avoid disputes about voting on important matters.