Understanding Disclosure Documents
Here are some of the most common disclosure documents and information sources you might see when you invest.
Overview
Disclosure documents are written materials that provide important information about investments, firms and financial professionals. These documents can give you information when you're considering a new firm, opening a new account, trying a new investment strategy, or buying investment products such as stocks, bonds, mutual funds, exchange-traded funds (ETFs) or municipal securities. They also provide details of your transactions and holdings, as well as the fees and costs you pay.
According to the Investor Survey component of the FINRA Investor Education Foundation's 2024 National Financial Capability Study (NFCS), only 51 percent of investors recall receiving disclosures, and even fewer say they at least skim them. However, taking time to review disclosure documents can help you make better decisions, avoid surprises and spot potential problems early.
Details
Here are some of the most common disclosure documents and information sources you might see when you invest:
Source
Originally published at www.fool.com.