Taxation of liquidating dividends america ferrera and daniel eric gold dating
In accordance with the Investment Company Act of 1940, the Board of Directors may not be radically changed without stockholder consent; a majority of the directors may not be affiliated with investment bankers or the investment company’s regular brokers, and must be independent of the company’s sales-distribution organization; and 40% of the board may not be investment advisers or officers of the company.
These provisions give positive protection against control of fund investment policy by sales groups, brokerage concerns, and investment banking houses.
Investment company management is usually steered by a Board of Directors or a Board of Trustees, composed largely of the company officers, established businessmen, directors of corporations, accountants, lawyers, bankers, and members of stock exchanges.
Third, it is evident that the open-end investment company cannot attain perfect fulfillment of all the objectives stated below, but makes available the most adequate combination of facilities for the individual investor; that is, it offers the package with the greatest total amount of management, diversification, income, liquidity, and dollar appreciation.
However, the investment company should not saddle its investors with a greater loss than the fall in portfolio values.
The closed-end companies did this in many cases after the 1929 crash, since their shares were purchased at a premium and sold at a discount during the depression.
There will be no claim in this thesis that the management of the investor’s capital will produce better results than that of an investment counsel who handles large accounts individually; that the diversification will be sounder than that of insurance companies under legal list requirements; that the income will be as stable as that of government bonds or as high as that from a given common stock; that the liquidity will be as great as that given by a savings bank; nor that the share will appreciate in value with the cost-of-living as a closed-end leverage share does.
The only claim will be that the investment company offers the best combination of these facilities to the individual investor.