SIE practice questionhardInvestment Company Act of 1940 - Registration
An investment company is formed to invest in stocks and is offering its own shares to the public. What must it do under the Investment Company Act of 1940?
- AFile a municipal bond prospectus
- BRegister its securities with the Federal Reserve
- CObtain a FINRA license
- DRegister with the SEC as an investment company✓ Correct answer
Explanation
Why D — Register with the SEC as an investment company
It must register as an investment company with the SEC. The SEC, not the Fed or FINRA, handles this; municipal bond prospectuses are unrelated.
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