Regulations & ConductQuestion 113 of 125

Under FINRA rules, communications with the public are generally categorized as:

a.Only advertisements
b.Retail communications, correspondence, and institutional communications
c.Only prospectuses
d.Solely social media posts

Explanation

FINRA classifies public communications as retail communications (distributed to more than 25 retail investors in 30 days), correspondence (to 25 or fewer retail investors in 30 days), and institutional communications. Each category carries different approval, review, and recordkeeping requirements, with retail communications facing the most oversight.

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