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elena-s [515]
3 years ago
10

When preparing an advertisement, an investment adviser whose principal business is rendering advice to customers about securitie

s, is prohibited from:
Business
1 answer:
ANEK [815]3 years ago
8 0

Complete Question:

When preparing an advertisement, an investment adviser whose principal business is rendering advice to customers about securities, is prohibited from:

Group of answer choices

A. showing past performance

B. using a paid testimonial

C. using illustrative performance charts

D. using the term "investment counsel"

Answer:

B. using a paid testimonial.

Explanation:

When preparing an advertisement, an investment adviser whose principal business is rendering advice to customers about securities, is prohibited from using a paid testimonial by the Securities and Exchange Commission Act.

A paid testimonial can be defined as a written or verbal statement made by an individual for the affirmation of good quality, performance and value of a product such as a stock.

Generally, a paid testimonial endorses an investment adviser but may not be a true reflection of his or her performance in stocks trading and that would negatively impact the customers.

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