STC Series 7 Progress Exam 1B | Questions with 100% Correct Answers | Updated and Verified

An RR has a potential customer who is interested in international investing and sends the person a prospectus for an international equity fund. The customer then visits the RR's office to ask some questions about the types of risks that are associated with the fund. In order to help the client understand the risks of the fund, which of the following actions may the RR perform? A. Highlight the relevant sections of the prospectus B. Create a summary of the fund's risks and provide it to the client C. Provide the client with supplemental sales literature regarding the fund D. Tell the client to ignore the prospectus and read the statement of additional information instead - C. Provide the client with supplemental sales literature regarding the fund RRs may not alter a prospectus in any way and they may not tell clients to disregard its contents. However, a client may be given supplemental sales literature provided it is properly approved and accompanied with or preceded by a prospectus. Materials that are directly created by RRs (e.g., summaries) may be considered sales literature and should not be used unless they have been approved by a principal. Series K preferred stock has which TWO of the following characteristics? I. The dividend payable begins at a fixed rate and switches to a floating rate. II. The dividend payable begins at a floating rate and switches to a fixed rate. III. The dividend is cumulative. IV. The dividend is non-cumulative. A. I and III