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Investment Company Act of 1940

A federal law that regulates the organization of companies, including mutual funds, that engage primarily in investing, reinvesting, and trading in securities, and whose own securities are offered to the investing public.

Open-end investment company

Commonly known as a mutual fund, this is a company that continually offers new shares to investors and redeems shares from investors, with share prices based on the fund's net asset value.

Transfer agent

A company that manages and maintains records for the ownership of securities (like mutual fund shares) for an investment company, including processing purchases, sales, and dividends.

Redemption

The act of selling shares back to an open-end investment company (mutual fund) to receive payment for them, essentially withdrawing money from an investment.

Specified adult

A term used in this bill to refer to a security holder who may be vulnerable to financial exploitation. The provided text of the bill does not include a specific definition for this term, but it generally refers to seniors or adults with impairments.

Financial exploitation

The illegal or improper use of a vulnerable adult's funds, property, or assets, often by a trusted individual or a scammer.