Global Definitions Database

A US federal law that regulates the organization of companies, including mutual funds, that engage primarily in investing, reinvesting, and trading in securities, and whose own securities are offered to the investing public; designed to minimize conflicts of interest that arise in these complex operations and requires these companies to disclose their financial condition and investment policies to investors when stock is initially sold and, subsequently, on a regular basis; it does not permit the Securities and Exchange Commission (SEC) to directly supervise the investment decisions or activities of these companies or judge the merits of their investments.