Practice Quiz

FINRA Series 6

Category - Series 6

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Giant Investments mass mails a single-page, glossy flyer that lists the types of mutual funds it offers, along with a general explanation of what the investment objective of each type of fund is. The flyer also prominently provides Giant’s contact information. Given these facts:
  1. Giant Investments must submit a copy of this brochure within 10 days of its initial distribution date to FINRA.
  2. a principal of Giant Investments must sign (or initial) and date the brochure, giving it his official approval.
  3. the brochure will be subject to spot checks by FINRA and will need to be kept on file.
  4. None of the above statements is true.
Explanation
Answer: D - Given the facts about the content of the flyer, none of the statements is true. If Giant Investments mass mails a flyer that only lists the types of mutual funds it offers along with a general explanation of what the investment objective of each type of fund is and Giant’s contact information, it has issued only a generic advertisement as defined by Rule 135A of the Securities Act of 1933. As such, it is not considered an offer to sell and does not have to meet the requirements to which more specific advertising material is subject.
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