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6 August, 06:05

Which of the following rules affected hedge funds as a result of the Dodd-Frank Act of 2010? A. Investors are allowed to make withdrawals after the first week. B. Carried interest is taxed as ordinary income. C. Large hedge funds must register with the SEC. D. Hedge funds have to make detailed disclosure of their asset holdings.

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  1. 6 August, 08:23
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    The correct answer is C. Large hedge funds must register with the SEC.

    Explanation:

    Due to their investment volume, they need to be registered in the database established by the SEC. This guarantees a tracking of each one of the hedging operations that are carried out, since they have a great impact on the markets in the event of a sharp drop. The other funds were not affected in the same way, because they do not need to report or file their information with the SEC.
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