Series 14: Exercise

Exercise

Answer true or false.

1.An advertisement about an investment company that is made before the investment company’s registration becomes effective must be accompanied or preceded by a preliminary prospectus.

2.An advertisement about investment companies that is limited to general statements about investment companies and their services would be considered a generic advertisement.

3.An omitting prospectus is never allowed to leave out information that appears in a statutory prospectus.

4.Supplemental sales literature related to an investment company may be used before the effective date of a registration statement.

5.A summary prospectus can never be used to meet the delivery requirements of a statutory prospectus.

Answers

1. False. This type of ad must be accompanied or preceded by a statutory prospectus. A