SIE practice questionmediumFair and Balanced Communications
Which statement best describes a fair and balanced communication?
- AIt is not misleading and presents both risks and benefits✓ Correct answer
- BIt can omit negative information if the product is popular
- CIt may guarantee investment returns
- DIt only needs to mention risks
Explanation
Why A — It is not misleading and presents both risks and benefits
Communications must be fair and balanced, meaning they are not misleading and present both the risks and the benefits.
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