publicly offered regulated investment company
(2) Treatment of publicly offered regulated investment companies (A) In general Paragraph (1) shall not apply with respect to any publicly offered regulated investment company. (B) Publicly offered regulated investment companies For purposes of this subsection— (i) In general The term “publicly offered regulated investment company” means a regulated investment company the shares of which are— (I) continuously offered pursuant to a public offering (within the meaning of section 4 of the Securities Act of 1933, as amended ( 15 U.S.C. 77a to 77aa)), (II) regularly traded on an established securities market, or (III) held by or for no fewer than 500 persons at all times during the taxable year. (ii) Secretary may reduce 500 person requirement The Secretary may by regulation decrease the minimum shareholder requirement of clause (i)(III) in the case of regulated investment companies which experience a loss of shareholders through net redemptions of their shares.