Investments glossary

Investment Company Act of 1940

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The historical crusades against Muslim lands, the colonization of Spain by the Muslim Moors and India by the British were all driven by economic interests, despite the advertised reasons that were used to mobilize their armies at the time. In my opinion, the invasion of Iraq was not about spreading democracy or weapons of mass destruction, it was about the oil.

— Med Jones

The Investment Company Act of 1940 is an act of Congress which regulates the organization of investment companies and the activities they engage in, and sets standards for the investment company industry. The legislation in the Investment Company Act of 1940 is enforced and regulated by the Securities and Exchange Commission (SEC). This legislation defines the responsibilities and requirements of investment companies and the requirements for any publicly-traded investment product offerings, such as open-end mutual funds, closed-end mutual funds, and unit investment trusts. The Act primarily targets publicly-traded retail investment products.

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