Correspondence and Advertising Standards

What this video covers

• Why the NASAA deceptive advertising prohibition covers far more than TV commercials, including sales presentations, brochures, flyers, and home-printed handouts
• How graphics, charts, or other materials can violate the rules even when 100% truthful, if they distract from or defeat the purpose of a prospectus
• What constitutes a bona fide transaction or quote, and why repeating a non-bona fide price from a colleague is still a dishonest practice
• The buddy-system loophole the exam loves to test: originating versus repeating false quotes makes no difference
• Why misleading filings under the Uniform Securities Act (USA) are a separate violation from deceptive advertising, based solely on whether the lie is told to an investor or to the state administrator
• Which documents fall under the misleading-filings prohibition: registration applications, financial statements, sales literature, and literally any document submitted to the Administrator