SIE Exam Question 6: Answer and Explanation

Question: 6

Any material for use in any newspaper, magazine, or other public medium, or by radio, television, or telephone recording, is referred to as ___________________.

• A. An advertisement
• B. A market letter
• C. A research report
• D. Sales literature

Correct Answer: A

Explanation:

The term advertisement refers to any material for use in any newspaper, magazine, or other public medium, or by radio, television, or telephone recording. A market letter, sometimes referred to as an investment newsletter, is a paid publication that focuses on a particular segment or type investments. A research report is typically a private report prepared for by an investment bank's research team for use by their customers. Sales literature is written material that outlines a product and its benefits, typically produced by the entity that is selling the product. Sales literature is often required to have a disclaimer noting the risks associated with investing.