Yahoo Not to Be Regulated as a Mutual Fund

The Securities and Exchange Commission approved Yahoo Inc.’s request not to be regulated as a mutual fund, which would have put the Internet portal under tighter investment restrictions. Yahoo, which holds investments in other companies, applied to the SEC in February for an exemption from the Investment Company Act. The SEC legally defines an investment company as one that is primarily engaged in investing, reinvesting, owning, holding or trading in securities and owns or proposes to acquire securities having a value of more than 40% of its total assets. The Santa Clara, Calif.-based company said it makes small, non-controlling investments in companies that complement its Internet and new-media business, carrying the investments on its balance sheet as long-term assets, and does not invest for short-term or speculative reasons. Yahoo shares closed unchanged at $139.50 on Nasdaq.