alleryStart learning →Which two kinds of prospectus does a mutual fund use?
AThe statutory prospectus and the annual report
BThe summary prospectus and shareholder report
CThe statutory and the summary prospectus
DThe offering circular and the fee table page
Answer & Solution
Correct answer: C. The statutory and the summary prospectus
1. There are two kinds of prospectus: the statutory prospectus and the summary prospectus.
2. The statutory prospectus is the traditional long-form document.
3. The summary prospectus runs a few pages and carries the key information, in the same standardized order.
4. Annual and semi-annual shareholder reports are separate documents delivered after the fiscal periods end.
_Source: US SEC Office of Investor Education and Advocacy, "Mutual Funds and ETFs: A Guide for Investors", section Prospectus and Summary Prospectus_
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