Are there any restrictions on advertising of financial instruments?

In California, there are certain restrictions on advertising of financial instruments. Federal and state laws both regulate the advertising of these instruments. According to the California Corporations Code, any advertisement of a security must include a statement of the risks involved in the investment as well as the registration status of the issuer. Additionally, California law also prohibits deceptive and fraudulent advertising of securities. This means that any advertisement which contains false or misleading information about a security is prohibited. Ads which advertise a rate of return that is substantially greater than the actual rate of return or which make exaggerated promises are examples of prohibited behavior. Advertisers must also ensure that their ads are not overly aggressive or contain information that could be seen as pressuring someone to buy a security or investment product. Ads should also not contain language or images which could be seen as suggesting that the investment is risk-free or success is certain. Ads cannot use exaggerated claims or suggest that their products could make a person rich. Overall, financial instrument advertisements must comply with the law and avoid any deceptive or fraudulent behavior. Advertisers must provide accurate information about their products and not use aggressive tactics or pressure to convince people to invest.

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Are there any restrictions on advertising of financial instruments?

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