RegulationsCâu 47 / 110
Before a newly formed open-end fund may offer shares to the public, the Investment Company Act of 1940 requires it to have:
a.At least $100,000 of net assets and at least 100 shareholders
b.At least $1 million of net assets and a five-year performance record
c.A minimum of 500 shareholders and a state banking charter
d.Approval from FINRA's board of governors
Giải thích
The Act sets a modest seed-capital requirement of $100,000 in net worth and a minimum of 100 shareholders before a public offering may begin, ensuring the fund is a genuine going concern. There is no performance-record or million-dollar requirement, and a new fund by definition has no track record. FINRA reviews underwriting arrangements but does not authorize the fund's existence.
Trích dẫn luật: Investment Company Act of 1940Luyện miễn phí toàn bộ 110 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- During the cooling-off period for a registered offering, a representative may:
- The Securities Exchange Act of 1934 is best known for:
- Under the Investment Company Act of 1940, what portion of a registered fund's board must consist of directors who are not affiliated with the fund's adviser or underwriter?
- A fund's board wants to change the fund from a growth objective to an aggressive high-yield bond objective. This change requires:
- Breakpoint selling is best defined as:
- A representative repeatedly redeems a customer's shares in one fund family and reinvests the proceeds in a similar fund at another family, generating a new sales charge each time. This practice is called:
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