SIE practice questioneasyInvestment Company Act of 1940
A mutual fund is most directly regulated by which of the following laws?
- ASecurities Exchange Act of 1934
- BInvestment Company Act of 1940✓ Correct answer
- CSecurities Act of 1933
- DDodd-Frank Act
Explanation
Why B — Investment Company Act of 1940
The Investment Company Act of 1940 establishes rules for the operation and structure of investment companies, such as mutual funds. The 1933 and 1934 Acts focus on offering and trading of securities, and Dodd-Frank deals with systemic risk and financial oversight.
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