SIE practice questioneasyInvestment Company Act of 1940 - Mutual Funds
A mutual fund is regulated primarily by which federal law?
- ANational Securities Markets Improvement Act of 1996
- BSecurities Act of 1933
- CSecurities Exchange Act of 1934
- DInvestment Company Act of 1940✓ Correct answer
Explanation
Why D — Investment Company Act of 1940
The Investment Company Act of 1940 is the key law for mutual funds. The 1933 Act concerns new offerings, 1934 covers exchanges, and NSMIA modernized some securities laws.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Investment Companies & Packaged Products questions
- A registered representative must always consider which factor when recommending investments?
- Which feature distinguishes a Unit Investment Trust (UIT) from mutual funds and closed-end funds?
- Closed-end funds differ from mutual funds in that closed-end funds:
- A registered representative recommends a speculative small-cap stock to a risk-averse retiree. Which principle is most…