In determining liability for errors in a registration statement,the plaintiff must prove that there was a misstatement or omission that was important enough to affect the plaintiff's investing decision.In other words,the misstatement or omission needs to be?

Question

Quizplus · Accepted Answer

The term "material" refers to information that would have a significant impact on an investor's decision-making process. Thus, the plaintiff must prove that the misstatement or omission was material enough to affect their decision to invest. Choices B, C, and D do not accurately reflect the legal standard for determining liability in this context.

In Determining Liability for Errors in a Registration Statement,the Plaintiff