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Question 1: Which of the following do not fall under the category of "advertisement," as defined by FINRA?
I. scripts used in telemarketing the products of the member firm
II. a website maintained by the member firm
III. research reports that the member firm distributes to both its existing clients and its prospective
clients
IV. sales material that a member firm distributes only to its institutional clients
A. I only
B. IV only
C. I, III, and IV only
D. III and IV only
Correct Answer: C
Explanation: Only the materials described in Selections I, III, and IV do not fall under the category of
"advertisement," as defined by FINRA. Scripts (Selection I) and research reports (Selection II) are
considered to be "sales literature," not advertisements. Sales material that is distributed only to
institutional investors (Selection IV) is in a category all by itself.
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