Are there any rules governing advertising of securities?

Yes, Texas has certain rules in place for advertising of securities. The Texas Securities Commission (TSC) regulates the sale and distribution of securities within the state. All securities that are being offered for sale in Texas must be registered with the state before they can be advertised. The TSC requires that all securities advertising provides fair and balanced disclosure of the terms of the security, and that the advertisement does not make any untrue or misleading statements. Additionally, all advertising of securities must be approved by the TSC prior to being released to the public. The TSC reviews the content and accuracy of the information and may require additional information to be included in the advertisement. The TSC also has rules regarding the pricing of securities. All securities must be sold at the offering price established and disclosed in the advertisement for the security. In addition, all advertised prices must be equal to or greater than the public offering price. The TSC also prohibits the advertising of any securities that do not have a current registration statement on file with the TSC or any securities that have been disapproved by the TSC. Furthermore, advertising material may not be used to promote the participation in any investment activity that does not comply with the TSC’s regulations. Overall, the rules put in place by the Texas Securities Commission are meant to ensure that investors are informed of the pertinent information regarding securities and that they are not misled or taken advantage of by misleading advertisements.

Are there any rules governing advertising of securities?

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