A Complex Product That Is Best Described in Writing Will

question 123

True/False

A complex product that is best described in writing will be difficult to explain to consumers who are unable to read. For this reason, a segment in which many consumers could not read would be considered unattractive because the consumers would not be responsive.

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Definitions:

Prospectus

A formal document that is required by and filed with the Securities and Exchange Commission that provides details about an investment offering for sale to the public.

Investment Policy

Investment Policy outlines a strategy, guidelines, and constraints for managing an investment portfolio.

Mutual Fund

An investment vehicle that pools money from multiple investors to buy a diversified portfolio of stocks, bonds, or other securities.

No-load Mutual Fund

A mutual fund that does not charge any type of sales load or commission to investors.