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 important is advertising revenue in the Internet sector?

    Learn about the importance of advertising revenue in the Internet industry. Find out how much Internet firms rely on advertising ...
  2. 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 ...
  3. What should I do with my retirement investment?

    <p>I have been divorced for a long time, and I am&nbsp;feeling the results&nbsp;of unsound financial "advisors".&nbsp;This ...
  4. How do Internet companies profit if they give away their services for free?

    Learn how companies in the Internet sector make a profit when service, content and user applications are offered at no cost ...
  5. What's the average salary of a financial advisor?

    Learn about average salaries for financial advisors. Explore different levels of compensation financial advisors receive ...
  6. Do financial advisors have a base salary?

    Find out how self-employed and corporate financial advisors make a living. Find out whether they get paid based on commission ...
RELATED TERMS
  1. Advertising Appropriation

    The portion of the total marketing budget that is allocated to ...
  2. Flighting

    An advertising scheduling strategy in which a business alternates ...
  3. Advertising Budget

    An estimation of a company's promotional expenditures over a ...
  4. Comparative Advertising

    A marketing strategy in which a company shows how its product ...
  5. Advertised Price

    The price of a product or service as displayed or announced in ...
  6. Tailored Advertising

    Marketing and advertising campaigns that place emphasis on the ...
Hot Definitions
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment ...
  2. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  3. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  4. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  5. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  6. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
Trading Center