Ch 24: Investment Product Disclosures

About This Chapter

This chapter aims to help you understand about the disclosures required for investment products. There is much to be considered in making investments, and this chapter covers every important aspect of what an investor needs to know.

Investment Product Disclosures - Chapter Summary

As you go through this chapter you will review the required disclosures on investment transactions. You'll look at categories of both investment risk and investment return, as well as the costs and fees that are necessary to disclose. You'll brush up on the special tax considerations for investment products. Additionally, by the end of this chapter you will be able to:

  • Describe market analysis considerations for investment products and for municipal securities
  • Explain FINRA Rule 2165
  • Provide a technical analysis of investment chart patterns
  • Discuss the impact of material event disclosures on retail sales of municipal bonds
  • Understand the SEC rules and regulations' effect on existing law
  • Explain gift tax limits and exclusions

Take your time going through this chapter. Use the tools that our professional instructors have designed to help you succeed. Each lesson is followed by a self-check quiz which allows you to gauge your learning. By the end of the chapter, you should be knowledgeable enough to succeed on the chapter test.

11 Lessons in Chapter 24: Investment Product Disclosures
Test your knowledge with a 30-question chapter practice test
Understanding Investment Risk: Definition & Categories

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.

Understanding Investment Returns: Definition & Categories

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.

Investment Costs & Fees

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.

Special Tax Considerations for Investment Products

4. Special Tax Considerations for Investment Products

This lesson will teach you about Special Tax Considerations for Investment Products, focusing on the unification of gift and estate taxes, lifetime exclusion, annual gift limit, taxation of securities received as a gift, and inheritance of securities.

Market Analysis Considerations for Investment Products

5. Market Analysis Considerations for Investment Products

This lesson deals with market analysis considerations for investment products. Learn about market sentiment, market indices, market momentum, and available funds.

Market Analysis Considerations for Municipal Securities

6. Market Analysis Considerations for Municipal Securities

The lesson deals with the pre-issuance market considerations for municipal bonds. Learn about the factors that affect bond issuance and bond indices based on different bond types.

FINRA Rule 2165: Financial Exploitation of Specified Adults

7. 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.

Technical Analysis of Investment Chart Patterns

8. Technical Analysis of Investment Chart Patterns

Technical analysis is an investment analysis technique that relies on a security's price (and volume) to determine future direction of that security's price. An investor can profit by honing skills learning key terms, price patterns, and conditions.

Impact of Material Event Disclosures on Retail Sales of Municipal Bonds

9. Impact of Material Event Disclosures on Retail Sales of Municipal Bonds

Municipal bonds are sold based on the creditworthiness of the municipality issuing the bonds. Issuers are required by the Securities and Exchange Commission to disclose material information for the offering and to keep investors updated afterwards.

SEC Rules & Regulations: Effect on Existing Law

10. SEC Rules & Regulations: Effect on Existing Law

Money managers are required to act in the best interest of their clients. The lesson provides an overview of section 28(e) in regard to the use of commission dollar by money manager to pay for research and other brokerage services and discusses the information that must be disclosed.

Gift Tax: Definition, Limits & Exclusions

11. Gift Tax: Definition, Limits & Exclusions

In this lesson we will take a look at what the gift tax is and the limits that apply to making gifts before tax consequences come up. We will also review certain gifts that specifically excluded from those situations.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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