One of the most powerful defenses of an issuer is the judicially created __________ doctrine.

Question

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The "bespeaks caution" doctrine is a judicially created defense for issuers in securities litigation. It provides that if the issuer's forward-looking statements are accompanied by meaningful cautionary statements that warn investors of the risks involved, the issuer may be protected from liability for those statements if they turn out to be false or misleading. This doctrine acknowledges that certain statements about future events are inherently speculative and protects issuers when they have adequately warned investors about the risks.

One of the Most Powerful Defenses of an Issuer Is