Series 63 practice questioneasyMaterial Information
Which of the following BEST defines 'material information' under the USA?
- AAny public statement made by the issuer
- BInformation a reasonable investor would consider important in making an investment decision✓ Correct answer
- CAll financial data of the issuer
- DAny information disclosed in the prospectus
Explanation
Why B — Information a reasonable investor would consider important in making an investment decision
Material information is defined as information that a reasonable investor would deem important to their investment decision. Not every public statement (A), all financial data (C), or all prospectus content (D) is necessarily material.
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