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Simple English definitions for legal terms

fraud-on-the-market theory

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

Fraud-on-the-market theory: This is a theory that says if someone lies about a company and the lie is important, it can affect the price of the company's stock. This theory is often used in lawsuits where people say they lost money because someone lied about a company. The court says that if the lie was important and lots of people knew about it, then anyone who bought or sold the stock during that time can sue. This is because people who buy and sell stocks rely on the price being fair, and if someone lies, it can make the price unfair.

A more thorough explanation:

Fraud-on-the-market theory is a legal concept that says if a company makes a false or misleading statement that affects its stock price, investors who bought or sold the stock can sue the company for securities fraud. This theory is often used in class action lawsuits where a large group of investors claim they were harmed by the company's actions.

For example, let's say a company announces that it has discovered a new product that will revolutionize the industry and cause its stock price to soar. However, the company knows that the product doesn't actually exist and is lying to investors. When the truth comes out, the stock price drops, and investors who bought the stock based on the false information lose money. Under the fraud-on-the-market theory, these investors could sue the company for securities fraud.

The fraud-on-the-market theory was established by the Supreme Court in the case of Basic v. Levinson in 1988. The Court ruled that investors who traded in a company's stock during a period when false or misleading information was publicly available could be presumed to have relied on that information, even if they didn't know about it directly. This made it easier for investors to bring securities fraud lawsuits against companies.

fraud in the inducement | fraudulent concealment

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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
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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