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

Question

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

Quizplus · Accepted Answer

Misrepresenting or omitting material facts in a registration statement or prospectus is a violation of the Securities Act of 1933. Puffery refers to exaggerations or opinions that are not meant to be taken literally and are not considered material facts.

Misrepresenting or Omitting Facts from a Registration Statement or Prospectus