Series 79: Forward-Looking Statements By Issuers

Forward-Looking Statements by Issuers

Even the most scrupulously honest issuers lack a crystal ball. When an issuer makes forward-looking statements—statements about projections or expectations for the future, rather than the present or past—it risks being wrong.

Securities Act Rule 175 and Exchange Act Rule 3b-6 contain identical safe harbor provisions for forward-looking statements made in good faith. For purposes of the rules, a “forward-looking statement” is limited to the following: (1) financial projections; (2) statements of management’s plans and objectives for future operations; (3) statements of future economic performance contained in management’s discussion and analysis