Series 63 practice questioneasyMisstatement of Facts
Under the USA, which of the following would be considered making an untrue statement of a material fact?
- APromising a guaranteed return when none exists✓ Correct answer
- BStating the security is subject to market risk
- CExplaining fees associated with the investment
- DProviding a prospectus to a client
Explanation
Why A — Promising a guaranteed return when none exists
Promising a guaranteed return, if untrue, is a material misstatement under Section 501. Stating risks (B), discussing fees (C), or providing disclosure (D) are not misstatements.
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