Saturday, January 17, 2009

Sales literature

Here is a potential exam question (a facsimile, that is) . . .

Under NASD/FINRA rules, which TWO of the following are considered sales literature?
I. web page
II. letter sent to a client
III. group e-mail sent to 33 recipients
IV. prepared script for a seminar

A. I, II
B. III, IV
C. II, IV
D. I, III

EXPLANATION: a letter/fax/email sent to fewer than 25 prospects in a 30-day period is correspondence, but if it's sent to 25 or more prospects, the communication becomes sales literature subject to pre-approval and filing by a principal. Materials that are broadcast to an unknown audience are considered advertising. Therefore, a web page, a billboard, or any TV, radio, newpaper, magazine,etc. advertisements = advertising. Sales literature is delivered to a targeted/controlled audience. Sales literature includes: market letters, circulars, scripts for cold-calling or seminars, computer slide shows, and research reports.

ANSWER: B

2 comments:

  1. Thanks! I've been having trouble keeping these definitions straight: advertising, sales literature, correspondence. I think I get "public appearances" now. I wish there wasn't so much stuff to know for this frickin test. But at least your Pass the 7 full package and DVD's are making it bearable.

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  2. Try the glossary at www.finra.org and also the one at www.msrb.org

    It's good to learn vocabulary terms from more than one perspective. It's not about memorization--it's about understanding the concepts.

    Thanks for buying the materials at www.passthe7.com

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