What is the purpose of a Free Writing Prospectus (FWP) in municipal offerings?

• A. It is a marketing piece used after the Official Statement.
• B. It replaces the Official Statement in certain offerings.
• C. It is a document that provides information about a new issue beyond the final Official Statement, used under certain conditions.
• D. It is a speculative rumor document.

Answer: (C)

The Free Writing Prospectus is a written document used in municipal offerings to provide information about a new issue beyond what’s in the final Official Statement, and it’s used under specific conditions during the marketing period. It lets issuers and underwriters share additional details or updates that aren’t yet in the Official Statement, while remaining subject to regulatory filing and disclosure rules. It does not replace the Official Statement and isn’t a rumor document; rather, it supplements the final OS to give investors timely information during the marketing process.