Advertising for municipal securities is regulated by Rule G-21 of the aptly named Municipal Securities Rulemaking Board (MSRB). According to the MSRB, there are three types of muni ads:

  1. Professional advertisements concern facilities, services or skills.
  2. Product advertisements concern municipal securities themselves.
  3. New issue advertisements are a special class of product ads describing securities that lack a long track record and thus require a higher standard of transparency.

Before a broker-dealer can place any muni ad, a principal from the firm must first approve it in writing. The firm must make and keep a file of the ad.

The standard for professional and product ads is that broker-dealers must not provide information they know or have reason to know is materially false or misleading.

The standard for new issue ads takes into account the possibility that the price or yield could change between the time the ad is placed and the time the security is available for sale. Thus, any statement about price or yield should also include the date at which it was sold under those terms. New issue ads should also indicate that the securities for sale may no longer be available at the time of publication or may be available at a price or yield different from that shown.



Investment Company Product Advertising

Related Articles
  1. Financial Advisor

    How to Find the Best Bets in Muni Bonds

    Approach investing in municipal bonds the same as you would investing in stocks.
  2. Investing

    A Look at the Pros and Cons of Muni Bonds

    Considering muni bonds? Here's a look at their pros and cons.
  3. Investing

    Municipal Bonds Offer Something More for Everyone

    Are municipal bonds really for me? The popular perception is that tax-exempt income only benefits those investors in the highest tax brackets.
  4. Small Business

    Bye, Mad Men: How the Net Is Changing Advertising (FB, TWTR)

    The Internet and digital media are changing the way companies advertise and market themselves. More targeted, varied and faster advertising is possible.
  5. Investing

    Do Municipal Bond Mutual Funds Offer a Tax Incentive?

    Learn about individual municipal securities and municipal bond funds, whose principal stability and tax-free yield appeal to high-income investors.
  6. Small Business

    Trends And Growth In The Digital Advertising Industry

    The rapidly expanding digital advertising industry is leading a shift towards content and demanding forced innovation.
  7. Investing

    Municipalities Free Up Cash With Chapter 9

    Find out what happens to municipalities when they need money, but have no other option than bankruptcy.
  8. Small Business

    How is Programmatic Advertising Changing Media?

    Understand what programmatic advertising is as well as the technology that drives it. Learn about the top four ways programmatic advertising is changing media.
  9. Investing

    3 Best High-Yielding Municipal Bond ETFs (HYMB, HYD)

    Discover and compare the characteristics of the top three high-yield municipal bond ETFs, including strategies to limit risk and increase yields.
  10. Investing

    4 Tax-Free Muni Bond ETFs to Consider

    Tax free municipal bond ETFs are an excellent way to build wealth slowly. Here are 4 you should consider.
Trading Center