Series 7 practice questioneasyCommunications with the Public (Retail and Institutional) — Content Standards
Which of the following statements about content standards for communications with the public is TRUE?
- APerformance projections are always permitted in retail communications.
- BCommunications must be fair and balanced and must not be misleading.✓ Correct answer
- CCommunications do not have to disclose risks if they are positive.
- DCommunications can omit material facts if the client already knows them.
Explanation
Why B — Communications must be fair and balanced and must not be misleading.
FINRA requires that all communications with the public must be fair, balanced, and not misleading, and must provide a sound basis for evaluating the facts regarding any security.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 755+ Series 7 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Seeks Business for the Broker-Dealer questions
- When a broker-dealer uses a testimonial in advertising, what must be disclosed according to FINRA rules?
- Under which circumstance must a firm's retail communication be filed with FINRA at least 10 business days prior to…
- A registered representative wants to share a client testimonial on her firm's official LinkedIn page. Which of the…
- Which of the following would be considered institutional communication?