With $9.8 billion in cash and securities, the SEC may start considering Google a mutual fund, Red Herring notes, which means the company might have to start spending that money like crazy - or face much tighter regulations. Google has applied for an exemption but of course isn't saying what they would do if they didn't get it.

Google lists $14.4 billion in assets, including $4 billion in cash and $5.8 billion in marketable securities. AP reports that the Investment Company Act of 1940 requires companies with more than 40% of assets in cash and securities to be regulated under the stricter disclosure and operating rules required of mutual funds. ``Google states that it is not in the business of investing, reinvesting, or trading in securities,'' the company said it a July 20 filing.

A Google spokesman told Red Herring: "Our only comment is that we hope our application will be approved and if necessary will work with the SEC to address any concerns."

How does a company even spend that much money, though? Google focuses on small companies with proprietary technology that probably cost between $8 and $20 million each. A real estate buying spree in Mountain View only dented the bank account by $300 million. RH suggests Google could do a massive expansion of infrastructure - or buy a Prius for everyone in Oakland.

- Richard Koman