A client is reading a financial publication that contains an advertisement for a mutual fund. Under the "omitting prospectus regulations" of the Securities Act of 1933, which of the following statements is FALSE?
(A) This advertisement can list past performance of the mutual fund
(B) This advertisement should disclose to investors that it is important to read the prospectus before investing
(C) This advertisement can be accompanied by an application to receive a prospectus
(D) This advertisement can be accompanied by an application to invest

Answer: Under the "omitting prospectus regulations" of the Securities Act of 1933, the following statements is false: This advertisement can be accompanied by an application to invest.

SEC Rule 482 states that securities can be sold only through a prospectus. Under this you can write an application to receive a prospectus but not to invest.

The correct option is (d).

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