If an investor should have known about a particular fact that was available in the total mix of information, the investor can later claim that the undisclosed fact was a material omission.

Question

Quizplus · Accepted Answer

Under securities law, an investor cannot claim that an undisclosed fact was a material omission if the information was available in the total mix of information and they should have known about it. Material omissions typically refer to information that was not disclosed but should have been, and that a reasonable investor would consider important in making an investment decision. If the information was available, even if not directly disclosed by the issuer, it cannot be considered a material omission.

If an Investor Should Have Known About a Particular Fact