Supreme Court decisions and guidance from the Financial Accounting Standards Board and the SEC boil down to two main thresholds for determining when information is material to shareholders, Dubow said. First, the information must be something a reasonable shareholder or potential shareholder would want to know when making decisions to buy or sell. Second, the material must “alter the total mix of information” available to investors about the company in question.

Source: Los Angeles Times December 27, 2018 13:52 UTC