Securities Trader Representative (Series 57) Practice Exam

Question: 1 / 400

What does "statement of additional information" (SAI) provide?

A summary of mutual fund performance

More detailed information about a mutual fund not contained in the prospectus

The statement of additional information (SAI) is an important document that provides more detailed information about a mutual fund that is not included in the mutual fund's prospectus. The SAI can include extensive data on the fund's investment strategies, financial statements, details about management, and information regarding the fund's policies. It serves to enhance the investor's understanding of the fund's operations by offering additional context and specifics that go beyond the summary provided in the prospectus, which covers essential information but often lacks in-depth details.

The value of the SAI lies in its capacity to illuminate aspects of the mutual fund that may not be fully covered in the prospectus, empowering potential investors with comprehensive insights necessary for making informed investment decisions.

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Legal jargon related to financial regulations

A list of stock market indices

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