Exemption for Municipal Fund Securities
A municipal fund security, discussed in greater detail in Chapter 2, is a fund of securities that is issued by a state or municipality. Because of its government issuer, a municipal fund security is exempt from the rules of the Investment Company Act of 1940. As such, it does not have to register with the SEC, prepare a prospectus, calculate and post its net asset value on a daily basis, or include independent directors on its board.
Exercise
Match each statement below wit