According to the Investment Company Act of 1940, all of the following statements are true EXCEPT:
A) an investment company must have more than $100,000 capitalization to be offered to the public.
B) shareholders have the right to vote on a company's change from a closed-end to an open-end investment company.
C) an investment company's board of directors may be composed of up to 70% of the company's interested persons.
D) open-end investment companies must redeem securities within seven days after their tender.
Answer: C) an investment company's board of directors may be composed of up to 70% of the company's interested persons.