Misrepresenting Facts in a Registration Statement or Prospectus Is Known

question 65

True/False

Misrepresenting facts in a registration statement or prospectus is known as puffery and does not violate the Securities Act of 1933.

---

Definitions:

Stereotypes

Oversimplified generalized beliefs about a particular group of people or things.

Diminished Judgement

A state or condition where a person's ability to make considered decisions or evaluations is impaired or reduced.

Sorting

The process of arranging items in a systematic order or classifying them into categories.

Characteristics

Traits or features that distinguish someone or something from others.