Series 63 practice questionmediumProspectus/Advertising
Which of the following communications would NOT satisfy the USA's disclosure requirements for a securities offering?
- AA newspaper tombstone ad summarizing the basic terms✓ Correct answer
- BA prospectus delivered before the sale
- CAn amended prospectus reflecting new material information, delivered before sale
- DA full prospectus delivered at the time of sale
Explanation
Why A — A newspaper tombstone ad summarizing the basic terms
Tombstone ads (A) are not sufficient disclosure documents; only a prospectus meets the USA's requirements. (B), (C), and (D) all satisfy disclosure obligations.
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