Information is material if a reasonable investor would consider it important in deciding whether to buy or sell. Materiality is an element of misstatement claims, and it is judged from the perspective of the reasonable investor rather than the actual audience.
law and enforcement · updated 2026-09-08
See also
Rule 10b-5— Rule 10b-5 is the SEC's general antifraud rule, adopted under Exchange Act section 10(b). It prohibits any device, scheme or artif…
Misstatement— A misstatement is an untrue statement of material fact, or an omission that makes what was said misleading. Half-truths are action…