A brochure advertising the Stocks4U Mutual Fund contains an example illustrating how much an investor who had invested $10,000 with the fund ten years ago would have in his account today, using the fund's historical return data, to illustrate the principle of compound interest. An example of this nature:
A) is expressly in violation of FINRA rules.
B) may be used only if there actually was such an investor on record.
C) may be used as long as there is a clear statement that the illustration in no way predicts or projects what an investor who invests $10,000 today would have in his account in ten years.
D) may be used only if the fund is expecting to be able to duplicate these returns over the next decade.
Correct Answer:
Verified
Q190: Which of the following is not required
Q191: The "statement of additional information" (SAI) that
Q192: Total Investments, a family of mutual funds,
Q193: Jack is an investment adviser representative employed
Q194: Dottie is a newly-minted, registered representative and
Q196: NewWave Investments, a family of mutual funds,
Q197: Sarah Bean is a registered representative with
Q198: Giant Investments, a family of mutual funds,
Q199: Giant Investments filed a registration statement with
Q200: Which of the following is a true
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents