The SEC requires that prospectuses or advertisements regarding a mutual fund contain information that returns of the mutual fund carry some risk.

Question

Quizplus · Accepted Answer

This statement is true. The Securities and Exchange Commission (SEC) requires that prospectuses and advertisements for mutual funds include the disclosure that investing in mutual funds involves risks. This is to ensure that investors are fully informed before making investment decisions.

The SEC Requires That Prospectuses or Advertisements Regarding a Mutual