______ are subject to the Securities act of 1933 and the Investment Company Act of 1940 to protect unsophisticated investors.

Question

Quizplus · Accepted Answer

Mutual funds are subject to the Securities Act of 1933 and the Investment Company Act of 1940 to protect unsophisticated investors. Mutual funds are required to provide extensive disclosures, including expenses, investment objectives, and risks associated with investing in the fund. Additionally, mutual funds are required to have an independent board of directors to oversee the fund's operations and protect the interests of shareholders. ADRs (American Depositary Receipts) are subject to the Securities Act of 1933 but not the Investment Company Act of 1940, while hedge funds are exempt from many of these regulations and are generally only available to accredited investors.

______ Are Subject to the Securities Act of 1933 and the Investment