1 Regulation of Investment Companies § 9.02
Summary
- [1] Introduction to Section 22(c), Rule 22c-1, and Section 22(e)
Unlike traditional corporate securities or shares of closed-end funds, which are traded in secondary markets, the shares of open-end mutual funds are “redeemable securities”2
NOTE:
In 2020, the SEC adopted Rule 2a-5, which establishes an updated regulatory framework for fund valuation practices.1 Rule 2a-5 is discussed in § 9.02[2][a][iv]. In addition, the SEC adopted Rule 31a-4, which requires a funds or its adviser to maintain appropriate documentation to support fair value determinations. Rule 31a-4 is discussed in § 9.02[2][a][iv][C].