3C7

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."

BREAKING DOWN '3C7'

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

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RELATED FAQS
  1. If an issuer wishes to register a security in the state ...

    The correct answer is a. Registration by coordination is permitted when the issuer has filed a registration application with ... Read Answer >>
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    Understand whether foreign investors are permitted to invest in hedge funds that are based in the United States, and find ... Read Answer >>
  3. How do I know if I am buying unregistered securities or stocks?

    All securities, including stocks, bonds and notes, must be registered with the Securities and Exchange Commission (SEC) before ... Read Answer >>
  4. What are unregistered securities or stocks?

    Before securities, like stocks, bonds and notes, can be offered for sale to the public, they first must be registered with ... Read Answer >>
  5. What is required to become an accredited investor in a private placement?

    Learn how the SEC defines accredited investors, and understand exceptions to the requirements for an accredited investor ... Read Answer >>
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    With all the financial organizations out there, knowing what they all do can be as complicated as knowing where to invest. ... Read Answer >>
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