If a registration statement omits material facts about the issuer's inquiry into or knowledge concerning a statement of opinion, and if those facts conflict with what a __________ investor would take from the statement itself, then the statement violates Section 11's omissions clause.

Question

Quizplus · Accepted Answer

A statement violates Section 11's omissions clause if it omits material facts that conflict with what a reasonable investor would take from the statement itself, as it pertains to the standard of what a typical investor would expect or understand from the information provided.

If a Registration Statement Omits Material Facts About the Issuer's