Series 79: Disclosure Standards

Disclosure Standards

The Securities Act requires information in a registration statement or other offering document to be accurate and complete. To meet this standard, the offering documents must not contain untrue statements of material fact or omit facts in such a way that the statements therein become misleading. Certain participants in a public offering, including underwriters, can be sued if the information in a registration statement is false or misleading. (We discuss communication-related liabilities in more detail in Chapter 5.)

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