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When a corporation wishes to issue certain securities; it must provide sufficient information for unsophisticated investors to evaluate the financial risk involved. Specifically, the law
When a corporation wishes to issue certain securities; it must provide sufficient information for unsophisticated investors to evaluate the financial risk involved. Specifically, the law imposes liability for making a false statement or omission that is material. Answer the following questions.
a) Define materiality. Be specific.
b) Provide two examples that would be considered material.
c) Provide two examples that would not be considered material.
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