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| Law that has historically been established by judicial precedents. Much common law has now been codified in state statutes. This law is the source of liability to clients and third parties (not covered by securities laws). |
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Definition
| Failure to even use slight care. Constructive fraud is often referred to as gross negligence. |
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| Negligence on the part of the plaintiff that contributed to that party's losses. Contributory negligence will typically mitigate some or all of the defendant's damages. |
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Definition
| The standard of care required under filings under Securities Act of 1933. To establish "due diligence" an accountant must have made a reasonable investigation, and must have had reasonable grounds to believe and did believe that that the registration statement (including the financial statements) were not misleading. |
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Term
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Definition
| A misrepresentation intended to mislead another party or a representation made with reckless disregard for its truth. |
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