Final answer:
An investment adviser may not include a listing of all recommendations in advertising without filing it with the SEC or the state prior to being disseminated. The SEC regulates the investment industry and requires transparency in advertising.
Step-by-step explanation:
An investment adviser may not include a listing of all recommendations in advertising without filing it with the SEC or the state prior to being disseminated.
The Securities and Exchange Commission (SEC) regulates the investment industry and requires transparency in advertising. Failure to comply with these regulations can result in legal consequences.
In general, false or misleading statements made in connection with a commercial transaction can be illegal if they constitute fraud.