registered investment company. A company that is required to register as an “investment company” with the SEC under the Investment Company Act of 1940 and is also required to register the public offering of its shares under the Securities Act of 1933. The definition of investment company in the Investment Company Act of 1940 generally includes any company that is engaged primarily in the business of investing, reinvesting, or trading in securities. regulated investment company (RIC). An investment company or trust eligible under subchapter M of the Internal Revenue Code to eliminate tax at the fund level by distributing all of its taxable income to its shareholders. The fund’s income thus is taxed only once, at the investor level. To qualify as a RIC, a corporation must be registered at all times during the taxable year under the Investment Company Act of 1940 and must derive at least 90 percent of its income from certain sources, including dividends, interest, and capital gains. It also must distribute at least 90 percent of the dividends and interest received. Mutual funds and closed-end funds are both regulated investment companies.