Marketing And Advertisement Quiz Questions

10 Questions | Total Attempts: 90

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Marketing And Advertisement Quiz Questions - Quiz

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Questions and Answers
  • 1. 
    When putting together a partial list of clients for your firm's marketing materials, you cannot use performance-related criteria to select which clients will appear on the list.  In other words, you can't select your top ten highest-performing accounts to appear on the list.
    • A. 

      True

    • B. 

      False

  • 2. 
    Advisers can market a "satisfaction guaranteed or your money back" claim.
    • A. 

      True

    • B. 

      False

  • 3. 
    An advertisement may contain a testimonial, provided that the client who provided the testimonial was not solicited to do so.  For example, if your firm receives a warm thank you note praising your services, the text of that note and the client's name can be used in an advertisement (assume the client has consented to such use).
    • A. 

      True

    • B. 

      False

  • 4. 
    An adviser prepares a quarterly client newsletter, which is often sent to prospects as well.  In the newsletter, the adviser discusses macroeconomic events as well as recent stock purchases in client accounts.  The adviser is careful to use objective, non-performance-based criteria to select the securities that it will discuss.  For example, one quarter it may discuss the securities that represented the largest purchases in equity client accounts.  The next quarter, it may select the largest positions held in those accounts.  True or false:  This is an acceptable practice.  (Assume that actual profits or losses are not discussed, that the newsletter discloses that the selected securities do not represent all of the securities purchased, sold, or recommended to clients, and that the adviser retains appropriate back-up records and provides them to the SEC staff on request.)
    • A. 

      True

    • B. 

      False

  • 5. 
    Promotional materials sent solely to existing clients are not advertisements.
    • A. 

      True

    • B. 

      False

  • 6. 
    An adviser may discuss the profitability of past stock picks to prospective clients that ask for such information, provided that the adviser did nothing to encourage such a request.
    • A. 

      True

    • B. 

      False

  • 7. 
    Advisers may no longer claim AIMR-PPS compliance in advertisements.
    • A. 

      True

    • B. 

      False

  • 8. 
    Your firm lures a star small cap equity portfolio manager away from your direct competitor, where she had been the only manager responsible for the firm's small cap separate accounts.  Let's call her Elizabeth.  At your firm, Elizabeth will be the only manager responsible for your firm's small cap separate accounts.  She will have sole discretion over those accounts, just like she did at her old firm.  When Elizabeth announced to her old employer that she was resigning to join your firm, she was allowed to remove only personal effects and was then promptly escorted to the door.  But while her old firm may not be happy about it, there's no reason - from a regulatory perspective - why your firm can't advertise Elizabeth 's past performance at her old employer.
    • A. 

      True

    • B. 

      False

  • 9. 
    An advertisement is any written material sent to a group of ten or more people.
    • A. 

      True

    • B. 

      False

  • 10. 
    From the SEC's perspective, advisers must present since-inception returns.
    • A. 

      True

    • B. 

      False

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