Investment Company and. Variable Contracts Products Principals (Series 26) Practice Exam

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How many business days before the use of sales literature must it include the most current performance data?

  1. 3 business days

  2. 5 business days

  3. 7 business days

  4. 10 business days

The correct answer is: 7 business days

Sales literature in the context of securities must provide potential investors with up-to-date and relevant information. The requirement is that any performance data included within sales literature must be current as of a certain number of business days preceding the distribution of that literature. This guideline is in place to ensure that prospective investors have access to the most accurate and recent performance information before making investment decisions. The correct choice reflects that sales literature should incorporate performance data that is current no later than 7 business days prior to its use. This time frame allows for the collection and updating of performance statistics, ensuring that the information is representative of the investment's current standing. By enforcing this standard, regulatory bodies aim to promote transparency and fairness in the investment process, helping investors base their decisions on timely data. The other options provide different time frames which do not meet the regulatory requirements for the distribution of such information, thereby not ensuring the accuracy and relevance of the performance data that potential investors rely on.