What constitutes a misrepresentation in securities fraud?

In Washington, a misrepresentation in securities fraud is a false or misleading statement or representation regarding the security or related financial transaction that is made to an investor or potential investor. Examples of misrepresentations include false statements about past performance or future earnings, the value of the security, or the terms of the transaction. Misrepresentations can also be made through omissions, such as failing to disclose material facts about the security or transaction. Misrepresentations can also be made through a variety of ways including through advertising, financial statements, verbal statements, written statements, and other written materials. All of these misrepresentations can be used to manipulate investors by creating false expectations and misleading investors into investing money in a security or financial transaction that does not have the expected value or terms. Misrepresentations in securities fraud are illegal and can lead to severe civil and criminal penalties.

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What constitutes a misrepresentation in securities fraud?

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