GR8 Stuf Company files a registration statement with the SEC before making an offering to the general public.The registration contains false,immaterial statements of which the investors are unaware.GR8 Stuf is charged with violating the Securities Act of 1933.GR8 Stuf's best defense is

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The best defense for GR8 Stuf would be that the untrue statements were not material. Materiality is a key element in determining whether a misstatement or omission is a violation of the Securities Act of 1933. The fact that the statements were immaterial means that they do not have the potential to influence a reasonable investor's decision to buy or sell securities, therefore, GR8 Stuf may not be found liable for the misstatements.

GR8 Stuf Company Files a Registration Statement with the SEC