According to the _____ doctrine, a court may determine that the inclusion of suf

Question

According to the _____ doctrine, a court may determine that the inclusion of sufficient cautionary statements in a prospectus renders immaterial any misrepresentations and omissions contained therein. A. Actual cause B. Bespeaks caution C. Common sense D. Trap door According to the _____ doctrine, a court may determine that the inclusion of sufficient cautionary statements in a prospectus renders immaterial any misrepresentations and omissions contained therein. A. Actual cause B. Bespeaks caution C. Common sense D. Trap door A. Actual cause B. Bespeaks caution C. Common sense D. Trap door

Explanation / Answer

B. Bespeaks caution

This doctrine protects the issuer of securities from forward looking statements with no disclaimers in the investment prospectus. Thus, the court may use this doctrine to determine if inclusion of sufficient cautionary statements in a prospectus renders immaterial any misrepresentations and omissions contained therein.

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