Space Flight Inc. files a registration statement with the SEC before making an offering to the general public. The registration contains false, immaterial statements of which the investors are unaware. The firm is charged with violating the Securities Act of 1933. Its best defense is

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The best defense for Space Flight Inc. would be that the untrue statements were not material, meaning they would not have affected the investment decision of a reasonable investor. The Securities Act of 1933 requires that all material facts are accurately disclosed; immaterial inaccuracies would not constitute a violation.