The Private Securities Litigation Reform Act of 1995, provides a(n) ________ from liability for publicly held issuers who make financial forecasts as long as the forecasts are accompanied by meaningful cautionary statements.

A) safe harbor
B) investment prospectus
C) immunity clause
D) limited reprieve
E) protection incentive

Safe Harbor

Legal provisions that protect parties from liability or penalties under specific conditions if they act in good faith.

Private Securities Litigation Reform Act

A 1995 U.S. law that aims to reduce frivolous or unnecessary securities lawsuits through various procedural and substantive changes.

Financial Forecasts

Projections of a company's future income, expenses, and capital requirements, based on assumptions about economic conditions, market trends, and business operations.