The 1940 Investment Company Act was all about investment companies, mainly mutual funds. Because so many investors got so screwed in the investment frenzy in the late 1920s, Congress wanted to be sure that, going forward, a bunch of well-dressed men in suits wouldn't steal Ma and Pa's kitchen. As a result, in order to sell shares to the public, mutual funds had various strictures placed upon them.
They had to register with the SEC, they had to clearly communicate their investment strategy,...
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