In this lesson, we’ll learn about the role of investment companies as securities issuers.

I. Investment Company

Under the Investment Company Act of 1940, also known as the ’40 Act, an investment company is an issuer that’s engaged primarily in the business of investing, reinvesting, or trading in securities.

The Investment Company Act contains a number of exceptions from the definition of investment company. The most important exception is for private investment companies, funds that have a...