SIE practice questionhardInvestment Company Act of 1940
The Investment Company Act of 1940 defines which of the following as investment companies?
- AFace-amount certificate companies, unit investment trusts, and management companies✓ Correct answer
- BBroker-dealers and mutual funds
- COnly closed-end funds
- DExchange-listed companies
Explanation
Why A — Face-amount certificate companies, unit investment trusts, and management companies
The Investment Company Act defines three types: face-amount certificate companies, unit investment trusts (UITs), and management companies (open- and closed-end mutual funds). Broker-dealers and exchange-listed companies are not investment companies under the Act.
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