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Definitions[]

General[]

Something is material if it has legal significance.

SEC Regulations[]

Information is considered material if there is a substantial likelihood that a reasonable investor would consider it important in making an investment decision or if the information would significantly alter the total mix of information made available.[1]

References[]

  1. Securities Act Rule 408, Exchange Act Rule 12b-20, and Exchange Act Rule 14a-9. See also Basic Inc. v. Levinson, 485 U.S. 224 (1988) (full-text); TSC Industries, Inc. v. Northway, Inc., 426 U.S. 438 (1976) (full-text).
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