Scope
The act's purpose, as stated in the bill, is "to mitigate and... eliminate the conditions... which adversely affect the national public interest and the interest of investors." Specifically, the act regulated conflicts of interest in investment companies and securities exchanges. It seeks to protect the public primarily by legally requiring disclosure of material details about each investment company. The act also places some restrictions on certain mutual fund activities such as short selling shares. However, the act did not create provisions for the U.S. Securities and Exchange Commission (SEC) to make specific judgments about or even supervise an investment company's actual investment decisions. The act requires investment companies to publicly disclose information about their own financial health.
Read more about this topic: Investment Company Act Of 1940
Famous quotes containing the word scope:
“As the creative adult needs to toy with ideas, the child, to form his ideas, needs toys—and plenty of leisure and scope to play with them as he likes, and not just the way adults think proper. This is why he must be given this freedom for his play to be successful and truly serve him well.”
—Bruno Bettelheim (20th century)
“Revolutions are notorious for allowing even non- participants—even women!—new scope for telling the truth since they are themselves such massive moments of truth, moments of such massive participation.”
—Selma James (b. 1930)
“In the works of man, everything is as poor as its author; vision is confined, means are limited, scope is restricted, movements are labored, and results are humdrum.”
—Joseph De Maistre (1753–1821)