[Vineyard Development] A community group in Montana wanted to revitalize the area and held a meeting urging residents to invest in local businesses. After the meeting, Mai and Trent, who own Valley Vineyard, decide to expand by adding a spa and first-class restaurant to the property to attract tourists. They plan to raise capital for the vineyard development by issuing securities to local investors. All of Valley Vineyard's property and assets are in Montana and their wine sales are about 85% to stores, consumers, or distributors within the state. Once the spa and restaurant are running, they would like to use their profits to open a small wine-bar in Florida.
-Under the Private Securities Litigation Reform Act of 1995, publicly held issuers of publicly held securities cannot be held liable when actual corporate earnings fall short of forecasted earnings as long as ________.

Question

Quizplus · Accepted Answer

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for issuers of publicly held securities from liability for forward-looking statements, including earnings forecasts, as long as those statements are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those in the forward-looking statement.

[Vineyard Development] a Community Group in Montana Wanted to Revitalize