Law Dictionary

fraud on the market theory

noun fraud on the market the·o·ry

Legal Definition of fraud on the market theory

  1. :  a theory of liability in securities fraud cases: a defendant's material misrepresentation regarding a security traded in the open market that affects the price of the security is presumed to have been relied on by a plaintiff who purchased the security and suffered a loss — compare efficient market

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capable of being understood in two ways

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