Presale disclosures by brokers and dealers7 of 8Would you buy a car if you could only get key information about its mileage, horsepower and warranty from a dealer three days after you bought it? That may seem ridiculous, but that's how many people now buy shares in mutual funds and other investments. In many cases, investors buy the fund and then receive the prospectus, which holds most of the pertinent information on the firm's holdings.Dodd-Frank aims to fix that pattern by authorizing the SEC to require presale disclosures by brokers and dealers to retail investors, including for mutual funds, Barr says. Those changes to financial regulation haven't been proposed.More On Investing:Find the best CD ratesCreate a news alert for "retirement"« Back to Financial Regulation. Related Articles:Money market fund new rulesHow to guard against fraudHelp for mortgage scam victims11 ways to prevent debit-card fraudRelated Links:The Fed's policy toolboxHow safe is your bank?5 financial mistakesThe skinny on penny stocks advertisement
Would you buy a car if you could only get key information about its mileage, horsepower and warranty from a dealer three days after you bought it? That may seem ridiculous, but that's how many people now buy shares in mutual funds and other investments. In many cases, investors buy the fund and then receive the prospectus, which holds most of the pertinent information on the firm's holdings.
Dodd-Frank aims to fix that pattern by authorizing the SEC to require presale disclosures by brokers and dealers to retail investors, including for mutual funds, Barr says. Those changes to financial regulation haven't been proposed.
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