About This Chapter
Disclosing Investment Product Information - Chapter Summary
The lessons in this chapter offer an entertaining and simplified way to learn about disclosing investment product information. For instance, you can study costs associated with investments and tax-exempt interest. After completing the chapter, you should be ready to:
- List disclosures required for investment transactions
- Outline categories of investment risk
- Discuss different types of investment returns
- Provide an overview of investment fees
- Recall special tax considerations for different investment products
- Give examples of market analysis considerations
- Explain what FINRA Rule 2165 addresses
This engaging chapter on disclosing investment product information was developed by experts focused on helping you grasp the topics presented. You are in total control of the learning process, which means you can study all the lessons or just a handful based on your needs. To make sure you understand what you've studied, there's a short quiz available for each lesson.
1. Understanding Investment Risk: Definition & Categories
When can you expect higher return by taking on more risk? What are these risks, and how much potential reward justifies them? In this lesson we will examine the different types of risk, which should lead to expected higher return and which are unnecessary and may not be offset with higher return.
2. Understanding Investment Returns: Definition & Categories
Consider a portfolio that yielded 4%, had a gross return of 8% and a net return of 5%. Portfolio performance often includes dividend and interest yields as well as realized and unrealized gains. Some of these gains are taxable events and others are not. With all of this to consider, how do we best calculate portfolio performance? These are the topics we address in this lesson.
3. Investment Costs & Fees
In this lesson, learn about all the various costs and fees associated with different types of investments (like mutual funds and annuities), accounts, and brokerage activities.
4. FINRA Rule 2165: Financial Exploitation of Specified Adults
What happens if a financial professional suspects that a client is being financially exploited? In this lesson, we'll examine FINRA Rule 2165, which helps protect vulnerable clients from financial exploitation.
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Other chapters within the Series 6 Exam: Study Guide & Practice course
- Financial Advertising & Communications With the Public
- Describing Investment Products & Services
- Disclosing Financial Account Types & Restrictions
- Understanding Retirement Plans & Tax Advantaged Accounts
- Obtaining Basic Customer Information & Documentation
- Obtaining Customer Investment Profile Information
- Obtaining Supervisory Approvals for Investment Accounts
- Analyzing Investment Portfolios & Financial Statements
- Types of Underlying Securities
- Understanding Funds, Trusts & Investment Companies
- Understanding Municipal Fund Securities
- Variable Life Insurance & Annuity Contracts
- Tax Treatment of Investment Profiles
- Updating Investment Customers & Retaining Customer Records
- Processing & Confirming Financial Transactions
- Resolving Investment Disputes & Customer Complaints