The SEC requires mutual funds to disclose the risk to investors of frequent trading in fund shares.

Name: The SEC requires mutual funds to disclose the risk to investors of frequent trading in fund shares.
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The SEC does require mutual funds to disclose the risks of frequent trading in fund shares, as excessive trading can have negative impacts on the overall performance of the fund and other investors. This disclosure is typically included in the fund's prospectus.

The SEC Requires Mutual Funds to Disclose the Risk to Investors