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Simple English definitions for legal terms

fraud-on-the-market principle

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A quick definition of fraud-on-the-market principle:

The fraud-on-the-market principle is a rule that says if someone buys a stock in a public market and the value of the stock is based on false information, they can sue for fraud even if they didn't know the information was false. This is because the market price of the stock reflects all available public information. However, this rule can be challenged. Fraud is when someone lies or hides important information to make someone else do something that hurts them. It can be a crime or a civil wrong.

A more thorough explanation:

Definition: The fraud-on-the-market principle is a legal doctrine that allows a plaintiff to establish reliance on a misstatement about a security's value without proving actual knowledge of the fraudulent statement. This is possible if the stock is purchased in an open and developed securities market. The doctrine recognizes that the market price of an issuer's stock reflects all available public information. The presumption is rebuttable.

Examples: If a company makes a false statement about its financial health, investors who purchased the company's stock in an open and developed securities market can sue the company for securities fraud. They can use the fraud-on-the-market principle to establish reliance on the false statement without proving that they knew the statement was false. The presumption is that the investors relied on the market price of the stock, which reflected the false statement. The company can rebut this presumption by showing that the investors did not rely on the false statement.

Explanation: The fraud-on-the-market principle is a legal tool that helps investors seek compensation for securities fraud. It recognizes that investors rely on the market price of a stock to make investment decisions. If a company makes a false statement that affects the stock price, investors who purchased the stock can sue the company for securities fraud. The fraud-on-the-market principle allows them to establish reliance on the false statement without proving that they knew the statement was false. This makes it easier for investors to seek compensation for securities fraud.

fraud on the community | frauds, statute of

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Dkk
19:42
Maybe, didnt happen last time.
19:42
it was hard to not improve it. google search was terrible due to the ads and seo cheaters with buzz words and alt text
Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
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