The centerpiece of the PSLRA is its __________ provision, which shields the issuer from liability based on statements and forecasts contained in the prospectus or made by executive management and authorized spokespersons of the issuer.

Question

Quizplus · Accepted Answer

The correct term is "safe-harbor" provision, which is designed to protect companies from litigation regarding the forward-looking statements they make, provided these statements are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ significantly from those in the forward-looking statement.

The Centerpiece of the PSLRA Is Its __________ Provision, Which