Asked by anthony triguero on Jun 26, 2024
Verified
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.
- Appreciate the significance of cautionary statements in securities litigation and the protection they offer to issuers.
Verified Answer
Learning Objectives
- Appreciate the significance of cautionary statements in securities litigation and the protection they offer to issuers.
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