Mutual Funds Are Regulated by

question 3

Multiple Choice

Mutual funds are regulated by

• A)The Securities Act of 1933.
• B)The Securities Exchange Act of 1934.
• C)The Investment Company Act of 1940.
• D)The Sarbanes-Oxley Act of 2002.

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Definitions:

Out-of-pocket Cost

Expenses that are paid out directly and result in a financial outlay.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating how much contributes to covering fixed costs and generating profit.

Operating Capacity

The maximum output that a company can produce under normal circumstances over a specific period.

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not influence future business decisions.