Q:
Under the Investment Company Act of 1940, which of the following is not a formal classification?
a) Unit Investment Trust
b) Face Amount Certificate Company
c) Management Investment Company
d) Mutual Fund
A:

The correct answer is d.
A mutual fund is technically registered under the ’40 Act as an open-end management investment company. It is a sub-category of the formal classification; Management Investment Company. All the others are classifications.


RELATED FAQS

  1. Can an open-ended fund's price appreciate significantly?

    Theoretically, open-end mutual fund prices can experience a significant increase in price. However, three factors need to ...
  2. You invest $1,000 in a mutual fund for two years. The mutual fund earned 25% in ...

    The correct answer is c). If you invest $1,000 and earn 25% you will now have $1,250 at the end of the first year ($1,00 ...
  3. Under the Uniform Securities Act, federal covered securities include those sold ...

    The correct answer is b. Qualified purchasers are defined under the Uniform Securities Act as either a person who owns at ...
  4. There are several major factors that make mutual funds attractive investments for ...

    The correct answer is b. While the exchange, or conversion, privilege in a family of mutual funds is certainly an advantage, ...
  5. Which of the following terms are associated with the purchase/redemption of open-end ...

    A) Forward pricing B) Current business day close C) At the money D) 90-day backdating The correct answer is A.Forward pricing ...
RELATED TERMS
  1. Management Investment Company

    A formal name for a company that sells and manages a portfolio ...
  2. Fund Company

    A commonly used term to describe an investment company, which ...
  3. Investment Company Act Of 1940

    Created in 1940 through an act of Congress, this piece of legislation ...
  4. Open-End Management Company

    A company that distributes and redeems securities it issues. ...
  5. Forward Pricing

    A Securities and Exchange Commission regulation that requires ...
  6. Prime

    A classification of borrowers, rates or holdings in the lending ...
Hot Definitions
  1. Pro Forma

    A Latin term meaning "for the sake of form". In the investing world, it describes a method of calculating financial results ...
  2. Trumpcare

    The American Health Care Act, also known as Trumpcare and Ryancare, is the Republican proposal to replace Obamacare.
  3. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
  4. Portable Alpha

    A strategy in which portfolio managers separate alpha from beta by investing in securities that differ from the market index ...
  5. Run Rate

    1. How the financial performance of a company would look if you were to extrapolate current results out over a certain period ...
  6. Hard Fork

    A hard fork (or sometimes hardfork) is a radical change to the protocol that makes previously invalid blocks/transactions ...
Trading Center