Document Type
Article
Publication Date
1969
Abstract
The Commission is aware that many investment companies have been acquiring substantial quantities of securities that cannot be offered to the public for sale without first being registered under the Securities Act of 1933 ("restricted securities"). For the year 1968, annual reports filed by registered investment companies indicate that open-end and closed-end companies together held in excess of $4.2 billion of restricted equity securities. Open-end companies--excluding exchange funds--accounted for about $3.2 billion of these restricted securities which represented 4.4 per cent of their total net assets. The acquisition by investment companies of such securities raises certain problems under the securities laws of which shareholders, distributors, managements and directors of these companies should be aware. This statement discusses these problems. No inference should be drawn from publication of this statement, however, as to the desirability or merits of the acquisition of restricted securities by a registered investment company.
Relational Format
article
Series Title
Accounting Series Release No. 113;Investment Company Act of 1940 Release No. 5847
Recommended Citation
United States. Securities and Exchange Commission, "Restricted securities" (1969). Federal Publications. 186.
https://egrove.olemiss.edu/acct_fed/186