Which entity is NOT included in the definition of an investment company under the act?

• A. Bank or savings and loan
• B. Unit Investment Trust
• C. Management Company
• D. Face-amount certificate company

Answer: (A)

Under the Investment Company Act, an investment company is defined by its business of investing, reinvesting, or trading in securities, or by presenting itself as an investment company. The statute specifically recognizes three forms: unit investment trusts, management companies, and face-amount certificate companies. A bank or savings and loan is not included in that definition because its primary function is depository services and lending, governed as a depository institution rather than an investment company. If a bank sponsors a mutual fund, the fund itself is the investment company, while the bank is not.