A Public Corporation states in an annual SEC disclosure that its product, the xWatch, is extremely profitable, and should generate 51 billion. The company omits, though, that it took pre-orders for the watch, and that most of the $1 billion was earned in the prior year. Most investors reading this Document would form the mistaken belief that the $1 billion was all earned in the current year, causing them to be misled in overvaluing the corporation's health and profitability. If an injured i investor sues under 10(b): The corporation is liable if the statement lacked material information The corporation is not liable because it has no duty to disclose information to the SEC after its IPO The corporation is not liable because the contested statement is factually accurate The corporation is liable only if the company is publicly traded
A Public Corporation states in an annual SEC disclosure that its product, the xWatch, is extremely profitable, and should generate 51 billion. The company omits, though, that it took pre-orders for the watch, and that most of the $1 billion was earned in the prior year. Most investors reading this Document would form the mistaken belief that the $1 billion was all earned in the current year, causing them to be misled in overvaluing the corporation's health and profitability. If an injured i investor sues under 10(b):
The corporation is liable if the statement lacked material information
The corporation is not liable because it has no duty to disclose information to the SEC after its IPO
The corporation is not liable because the contested statement is factually accurate
The corporation is liable only if the company is publicly traded
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