What Is SEC Form N-2?

SEC Form N-2 is a filing with the Securities and Exchange Commission (SEC) that must be submitted by 澳洲幸运5官方开奖结果体彩网:closed-end management investment companies to register under the 澳洲幸运5官方开奖结果体彩网:Investment Company Act of 1940 and to offer their shares under the 澳洲幸运5官方开奖结果体彩网:Securities Act of 1933.

Form N-2 may be compared with 澳洲幸运5官方开奖结果体彩网:SEC Form N-1A, required instead by open-ended investment companies.

Understanding SEC Form N-2

SEC Form N-2 is required by closed-end investment companies. A closed-end fund is a portfolio of pooled assets that raises a fixed amount of capital through an 澳洲幸运5官方开奖结果体彩网:initial public offering and then lists shares for trade on a stock exchange. Examples may include 澳洲幸运5官方开奖结果体彩网:closed-end mutual funds or 澳洲幸运5官方开奖结果体彩网:exchange traded funds. In contrast, open-end fund shares are issued and redeemed daily by the fund's sponsor (the issuer of the fund). By design, these funds are always traded at their 澳洲幸运5官方开奖结果体彩网:actual cash value, also known as 澳洲幸运5官方开奖结果体彩网:net asset value, which is calculated on a per-share ba𒅌sis before sales charges ar🍃e applied.

Part A of SEC form N-2, the prospectus, must contain clearly-written information about the investment that the average investor (who may not have a specialized background in finance or law) can understand. This information should describe the investment's fees, financial highlights, plan of distribution, use of proceeds, management, capital stock, long-term debt, defaults and arrears on senior securities, and pending legal proceedings. Part B contains additional information that may be of interest to some investors, such as investment objectives and policies, principal holders of securities and financial statements.

An exception for small business investment companies licensed by the Small Business Administration does exist. SEC Form N-2 is meant to provide investors with information concerning closed-end management companies, useful in determining an investment company's attractiveness.

Form N-2 is also commonly referred to simply as a "registration statement."

Elements of an SEC Form N-2

Form N-2 is a three-part registration statement consisting of a prospectus, a 澳洲幸运5☂官方开奖结果体彩网:statement of additional information (SAI) and certain other information.

1. The prospectus is designed to provide shareholders with essential information about the fund and should be written in clear, concise language (i.e., plain English).
2. The SAI is designed to provide shareholders with additional, more detailed information about a fund, its management and service providers, and its policies. The SAI is not delivered to shareholders but must be available on request for free.
3. Other information included in the registration statement includes corporate organizational documents and certain contracts and compliance policies.