What are the key requirements for municipal securities advertising?

• A. Ads may promise guaranteed yields.
• B. Ads must disclose all potential risk if allowed by issuer.
• C. Ads must include the issuer's financial ratings.
• D. Ads must be truthful and not misleading, include required disclosures, and avoid promises or guaranteed yields.

Answer: (D)

Advertisements for municipal securities must be truthful and not misleading, with any required disclosures included. This reflects the rule that advertising should present information in a fair, transparent way so investors understand the risks and features of the offering. Because yields and payments on municipal securities depend on credit, taxes, and market conditions, promising guaranteed yields or fixed returns is misleading and not permitted. Ads must provide the disclosures that MSRB requires, and they should present information in a way that does not distort the facts. Including the issuer’s financial ratings is not a blanket requirement in every ad and can be misleading if not provided with proper context, so it’s not the core obligation. In short, the standard is honesty, clear disclosures, and avoidance of guarantees or promises about returns.