Question

Under the Act of 1940, customers who redeem must be paid within _____ calendar days of the redemption date.

A. 3
B. 7
C. 30
D. 60

Answer 1

The correct answer to the question under the Act of 1940 is that customers who redeem shares must be paid within 7 calendar days of the redemption date.

Step-by-step explanation:

Under the Investment Company Act of 1940, customers who redeem shares must be paid within 7 calendar days of the redemption date. This regulation is designed to protect investors by ensuring that they have timely access to their funds after they have made the decision to sell (or redeem) their shares in a mutual fund or similar investment vehicle. It is important for mutual fund companies to adhere to this stipulation to remain compliant with the law and maintain investor confidence.