SIE practice questioneasyMutual Funds — Prospectus Delivery
When must a mutual fund prospectus be delivered to an investor?
- AWithin 30 days after the purchase
- BOnly for investments exceeding $10,000
- CAt or before the time of sale (or with the trade confirmation)✓ Correct answer
- DOnly if the investor specifically requests it
Explanation
Why C — At or before the time of sale (or with the trade confirmation)
Federal securities laws require that a mutual fund prospectus be delivered at or before the time of sale, or with the confirmation of the transaction. The prospectus contains essential information about fees, objectives, risks, and performance. This requirement applies to ALL purchases regardless of amount. A summary prospectus may satisfy the delivery requirement.
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