SIE practice questionmediumInvestment Company Act of 1940 and Account Types
An investor opens an account with a mutual fund company. Which law primarily governs the fund's structure?
- AInvestment Company Act of 1940✓ Correct answer
- BSecurities Act of 1933
- CSecurities Exchange Act of 1934
- DRegulation D
Explanation
Why A — Investment Company Act of 1940
The 1940 Act governs mutual fund formation and operation. The 1933 and 1934 Acts cover offering and trading. Regulation D is for private placements.
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