A portion of the Investment Company Act of 1940 that permits the exclusion of investment companies from standard registration requirements with the Securities and Exchange Commission (SEC) if they have fewer than 100 U.S. investors.
Investopedia Says:
This particular section is one of two policies used frequently by hedge fund companies to avoid certain SEC requirements.
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Find out how this U.S.-born investment innovation became a $1-trillion industry that's both praised and vilified by the media. A Brief History Of The Hedge Fund
Find out how this regulatory body protects the rights of investors. Policing The Securities Market: An Overview Of The SEC
This popular investment vehicle has seen its share of ups and downs, successes and scandals. Read all about it here. A Brief History Of The Mutual Fund
