5-14 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 SEC requires that all prospectuses or advertisements regarding a mutual fund contain a disclaimer stating that investments in mutual funds involve risks, including the possible loss of principal. This is to ensure that investors are aware of the potential risks associated with investing in mutual funds.

5-14 the SEC Requires That Prospectuses or Advertisements Regarding a Mutual