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The Investment Company Act of 1940 classifies investment companies into which three types?

a.Face-amount certificate companies, unit investment trusts, and management companies
b.Open-end funds, closed-end funds, and hedge funds
c.Mutual funds, exchange-traded funds, and separate accounts
d.Growth funds, income funds, and balanced funds

Explicación

The Act defines exactly three classifications, with management companies then subdivided into open-end and closed-end. Hedge funds are typically structured to rely on exclusions from the Act rather than being a statutory class. ETFs and separate accounts are organized within the existing classifications, and growth, income, and balanced describe investment objectives rather than legal form.

Referencia Legal: Investment Company Act of 1940

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