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Home > Legal Research > Glossary
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Fraud on the market theory |
Definition - Noun
: 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
Based on Merriam-Webster's Dictionary of Law ©2001.
Merriam-Webster, Incorporated
Published under license with Merriam-Webster, Incorporated.
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