Q:
Michael Feinberg sends a memo to his star investment advisor, Lee Friendly. In the memo Michael includes charts and graphs that illustrate the success of one of the company's proprietary mutual funds. Does this constitute advertising?
a) No, Michael is only sending this communication to one person: an employee.
b) If it were sent over the internet it would be considered advertising.
c) Yes, Michael is advertising to Lee.
d) Yes, it is an in-house ad for a company fund.
A:
The correct answer is a).
Consider the intended target audience when deciding if a communication constitutes advertising. Under the Investment Advisor's Act of 1940, a memo, brochure, email, etc. is considered advertising if it is intended to reach more than one person. Michael's email to Lee is an informative communication intended for one person and, therefore, is not considered advertising.

RELATED FAQS

  1. How are debit notes to help collect on a debt?

    Learn what a debit note is and how it's associated with a debit memo request. Understand how a debit note works to help a ...
  2. Can I make money advertising on my car, or is it a scam?

    Are car wrap advertising companies legitimate? Some companies are scams, but some car wrap companies offer legitimate ways ...
  3. What is the "bait & switch" technique?

    The bait and switch is a advertising technique which can be considered illegal, but in most cases is merely looked upon as ...
  4. What are the primary activities of Michael Porter's value chain?

    Understand the primary activities of Michael Porter's value chain, and learn how a company can optimize those activities ...
  5. What are some of the ways that a company can improve its brand equity?

    Learn why brand equity is so valuable in business. These strategies for gaining high exposure and a great reputation will ...
RELATED TERMS
  1. Advertising Appropriation

    The portion of the total marketing budget that is allocated to ...
  2. Advertising Federation Of America - AFA

    A regional advertising group based on the U.S. East Coast that ...
  3. Advertising Elasticity Of Demand - AED

    A measure of a market's sensitivity to increases or decreases ...
  4. Advertising Association Of The West - AAW

    A regional advertising group based on the American West Coast ...
  5. Advertising Budget

    An estimation of a company's promotional expenditures over a ...
  6. Below The Line Advertising

    In general, an advertising strategy in which a product is promoted ...
Hot Definitions
  1. Protectionism

    Government actions and policies that restrict or restrain international trade, often done with the intent of protecting local ...
  2. Fiduciary

    A fiduciary is a person who acts on behalf of another person, or persons to manage assets.
  3. Demonetization

    Demonetization is the act of stripping a currency unit of its status as legal tender and is necessary whenever there is a ...
  4. Investment

    An asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic ...
  5. Redlining

    The unethical practice whereby financial institutions make it extremely difficult or impossible for residents of poor inner-city ...
  6. Nonfarm Payroll

    A statistic researched, recorded and reported by the U.S. Bureau of Labor Statistics intended to represent the total number ...
Trading Center