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some people hate him. some people love him, but he a real one: https://youtu.be/w5oEqiVQcF4?t=173
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Simple English definitions for legal terms
Investment Company Act
Read a random definition: Tucker Act
A quick definition of Investment Company Act:
The Investment Company Act is a law made in 1940 to stop bad financial behavior and protect people who invest their money. It makes sure that investment companies register with the government and follow rules to prevent fraud. It also stops certain people from being involved in investment companies if they have done bad things in the past. The law also makes sure that investment companies don't change their plans without asking their investors first. It also regulates the contracts between investment advisers and underwriters.
A more thorough explanation:
The Investment Company Act is a federal law passed in 1940 to prevent financial misconduct and abuses by regulating investment company activities and transactions. The act requires investment companies to register and prohibits transactions by unregistered companies. It also regulates affiliations of directors, officers, and employees, and bars changes in investment policy without shareholder approval.
- An investment company that manages mutual funds must register with the Securities and Exchange Commission (SEC) under the Investment Company Act.
- An investment company cannot change its investment policy without first obtaining approval from its shareholders.
- An investment company cannot engage in certain transactions with its affiliated persons or underwriters.
These examples illustrate how the Investment Company Act regulates investment companies to prevent financial misconduct and protect investors. By requiring registration, regulating affiliations, and ensuring shareholder approval for changes in investment policy, the act aims to promote transparency and accountability in the investment industry.