Investment Company and. Variable Contracts Products Principals (Series 26) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the Series 26 exam with flashcards and multiple choice questions. Each question includes hints and detailed explanations to help you understand and master the material needed to pass your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What must all sales literature that includes performance data for an investment company identify?

A reference to the fund manager
A risk assessment of the fund
A website or phone number for current performance data
A comparison with industry benchmarks

The correct answer is: A website or phone number for current performance data

When sales literature for an investment company includes performance data, it is essential to provide a website or phone number where potential investors can obtain current performance data. This requirement is in place to ensure transparency and allows investors to verify and access the most up-to-date information regarding the fund's performance. This practice withstands the test of time by promoting informed decision-making and responsible investing. Providing a reference to the fund manager, a risk assessment of the fund, or a comparison with industry benchmarks, while valuable information, does not meet the specific regulatory requirement focused on accessibility to current performance information. Therefore, having a readily available means for potential investors to access updated performance details is crucial and is considered a best practice in the investment industry.