Required Disclosures on Specific Transactions

What this video covers

• The "reasonable investor" standard for material facts, and why an omission can rise to fraud under the Securities Exchange Act's antifraud provisions
• The five categories of material information: risks, fees and expenses, conflicts of interest, liquidity limitations, and issuer financial condition
• How the mutual fund prospectus (Part A) is automatically delivered, while the Statement of Additional Information (Part B) is only delivered upon request and at no charge
• Continuing disclosure of material events for municipal securities, and why EMMA is a Municipal Securities Rulemaking Board (MSRB) system, not a Securities and Exchange Commission (SEC) system
• Which events count as material (mergers, management changes, restatements, defaults, downgrades, bankruptcies, unscheduled draws on reserves, rating changes)
• What a control relationship is, including affiliation, shared ownership, and board overlap with the issuer
• The exact timing rule for control-relationship disclosure: before or at the time of the transaction, never after