Inadvertent Investment Company

Definition:

A company that falls within the definition of an Investment Company under the Investment Company Act, but which is not a traditional Investment Company. Because the definition of Investment Company under the Investment Company Act is so broad, a company that holds substantial minority interests in other companies that it does not control, or an Operating Subsidiary that temporarily holds investment securities constituting a large percentage of its assets, may be deemed an Investment Company even though they are not pursuing the activities that the Investment Company Act was meant to regulate.

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