3C7

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DEFINITION of '3C7'

A portion of the Investment Company Act of 1940 that permits the exclusion of investment companies from standard registration requirements with the Securities and Exchange Commission (SEC) if all U.S. investors are considered to be "qualified purchasers" or "accredited investors."

INVESTOPEDIA EXPLAINS '3C7'

This particular section is one of the policies used frequently by hedge fund companies to avoid certain SEC requirements.

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