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How are LGIPs (Local Government Investment Pools) typically formed, and are they similar to a specific type of financial entity? Additionally, do LGIPs need to register with the SEC (U.S. Securities and Exchange Commission)?

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Final answer:

LGIPs are formed by local governments pooling their funds to invest, similar to money market mutual funds. They are regulated at the state level and do not need to register with the SEC.

Step-by-step explanation:

LGIPs, or Local Government Investment Pools, are typically formed by a group of local governments pooling their funds together to invest in various financial instruments. These pools are similar to money market mutual funds, as they offer a way for local governments to invest their excess cash in a diversified portfolio while maintaining liquidity. LGIPs are regulated at the state level, and they do not need to register with the SEC (U.S. Securities and Exchange Commission) because they are considered government entities.

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