Code Section 562
| Code Section | Effective Date | Name of Act | Name of Provision | 10yr Revenue Estimate ($millions) |
|---|---|---|---|---|
| 562 | 12/22/2010 | Regulated Investment Company Modernization Act of 2010 | Repeal of Preferential Dividend Rule for Publicly Offered RICs | Negligible |
Repeal of Preferential Dividend Rule for Publicly Offered RICs
Explanation of Provision
The provision repeals the preferential dividend rule for publicly offered RICs. For this purpose, a RIC is publicly offered if its shares are (1) continuously offered pursuant to a public offering, (2) regularly traded on an established securities market, or (3) held by
no fewer than 500 persons at all times during the taxable year.
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