SIE practice questionmediumProspectus Delivery
A firm provides outdated prospectus information to prospective mutual fund investors. What prohibited activity does this describe?
- AUnauthorized trading
- BMisrepresentation and failure to deliver current disclosure✓ Correct answer
- CSelling away
- DBreakpoint sale
Explanation
Why B — Misrepresentation and failure to deliver current disclosure
Delivering outdated or false prospectus information is misrepresentation, a violation of securities laws. The other answers refer to different regulatory issues.
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