Examlex
The very first public equity issue that is made by a company is referred to as:
Negligent Misrepresentation
A false statement made carelessly that leads another to act on it to their detriment.
Reasonable Care
A legal standard that requires individuals to act with the same level of care that a reasonably prudent person would exhibit in the same situation.
Fraudulent Misrepresentation
An intentional false statement of a material fact made by one party to induce another party to enter into a contract, resulting in harm or loss.
Defalcation
The misappropriation of funds or property by a person trusted with its charge; often related to embezzlement.
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