The Investment Company Act of 1940 Defines Investment Companies and Excludes

question 72

True/False

The Investment Company Act of 1940 defines investment companies and excludes them from using some of the registration exemptions originating in the 1933 Act.

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Definitions:

Cumulative Preferred Stock

Preferred stock where dividends accumulate if not paid in a given year and must be paid out before dividends can be distributed to common stockholders.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer.

Dividends Received

Refers to the payments received by shareholders from a company's earnings, typically distributed periodically.

Dividend Record Date

The specific date set by a corporation's board of directors after which the shareholders on record will be entitled to receive the declared dividend.