The Investment Company Act Requires That at Least 40% of the Board

question 284

Multiple Choice

The Investment Company Act requires that at least 40% of the board of directors of an investment company must be outsiders to:

• A) reduce possible conflicts of interest
• B) prevent insider trading
• C) reduce the possibility of insider trading
• D) make sure the board is very diverse
• E) none of the other choices are correct

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Definitions:

Egas Moniz

A Portuguese neurologist who is credited with the development of cerebral angiography and the controversial prefrontal leucotomy, for which he was awarded the Nobel Prize in Physiology or Medicine in 1949.

Dormitory-Like Facility

A residential setup where individuals share living quarters and resources, often associated with colleges or boarding schools.

Paraprofessionals

Individuals with specialized training who assist professionals, especially in fields like education and healthcare, but do not have the full professional accreditation.

Philippe Pinel

A French physician known for his work in the late 18th and early 19th centuries, significantly contributing to the reform of mental health care.