Prospectus Rules
Because mutual fund shares are issued new for each purchaser, all must be sold with a prospectus. In addition, new issues of closed-end funds must be sold with a prospectus. The prospectus must be delivered by the confirmation of the transaction, which usually means settlement. The SEC does not permit prospectuses that are in use for more than 9 months to have financial information in them that is more than 16 months old.