Misrepresenting facts in a registration statement or prospectus is known as puffery and does not violate the Securities Act of 1933.

Name: Misrepresenting facts in a registration statement or prospectus is known as puffery and does not violate the Securities Act of 1933.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Misrepresenting facts in a registration statement or prospectus is considered fraud and violates the Securities Act of 1933, which requires truthful disclosure of material information about securities being offered for public sale.

Misrepresenting Facts in a Registration Statement or Prospectus Is Known