UNIT 3 MC

Under the Investment Company Act of 1940, which of the following statements is true about an investment company that wishes to contract with an outside investment adviser to manage its portfolio?

The contract between the investment company and the investment adviser must be in writing.

If an investment company invests in a fixed portfolio of municipal or corporate bonds, it is classified as

a unit investment trust.

T/ F : no more than 60% of the board of directors can be made up of officers or employees of the company.

Truuuuu

The fee charged by some mutual fund companies if shares are redeemed within a specified time after being purchased is known as

contingent-deferred sales charges (CDSC)

Open-end investment companies must have a minimum of $__ in assets to have a public offering.

100,000$

no registered investment company may own more than __% of the voting shares of another registered investment company

3%