What are general guidelines for advertising and communications about municipal securities?

• A. Communications must be truthful, not misleading, and must include required disclosures when applicable
• B. Communications may be misleading if beneficial to issuer
• C. Disclosures are optional for municipal ads
• D. Only disclosures about ratings are required

Answer: (C)

Communications about municipal securities must be truthful, not misleading, and include required disclosures when applicable. This means you can’t omit material facts or present information in a way that could mislead an investor. If the advertisement includes third-party information like ratings, you must clearly identify the rating source and date, and note that ratings are opinions, not guarantees of credit quality. When performance data, yields, or price information are shown, provide proper context and the date, and avoid selective presentation that could distort the investor’s understanding. Disclosures are not optional; they depend on the content and whether any third-party data or material information is being conveyed.