fraud on the market theory


fraud on the market the·​o·​ry
: 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

Dictionary Entries Near fraud on the market theory

Cite this Entry

“Fraud on the market theory.” Legal Dictionary, Merriam-Webster, Accessed 17 Jul. 2024.

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!