SEC Form N-2

DEFINITION of 'SEC Form N-2'

A filing with the Securities and Exchange Commission (SEC) that must be submitted by closed-end management investment companies, with the exception of small business investment companies licensed by the Small Business Administration, to register under the Investment Company Act of 1940, and to offer their shares under the Securities Act of 1933. SEC Form N-2 is meant to provide investors with information about closed-end management companies to determine whether they should invest in them.

BREAKING DOWN 'SEC Form N-2'

Part A of this filing, the prospectus, must contain clearly-written information about the investment that the average investor, who may not have a specialized background in finance or law, can understand. This information should describe the investment's fees; financial highlights; plan of distribution; use of proceeds; management; capital stock, long-term debt, and other securities; defaults and arrears on senior securities; and pending legal proceedings. Part B contains additional information that may be of interest to some investors, such as investment objectives and policies, principal holders of securities and financial statements.

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