Forward-looking statement

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In the United States business law, a forward-looking statement or a safe harbor statement is a statement that can not defend itself as a mere historical fact. Forward-looking statements predict, project, or use future events as hopes or possibilities. These statements can often be misleading, because they can be misinterpreted as factual statements, when in fact they are speculations. According to the United States Code 15 Section 78u-5, forward-looking statements may include future economic performance such as revenues or revenues, plans for future operations, or use of reports written by outside reviewers.

Video Forward-looking statement

United States Act

Under the laws of the United States, section 27A of the Securities Act of 1933, as amended, and article 21E of the Securities Exchange Act of 1934, as amended, businesses must adhere to communication standards that limit risk factors. This action is partially implemented to protect investors from ambiguous language, preventing them from making informed investment decisions based on speculative statements.

The Private Securities Litigation Reform Act of 1995 provides a "safe port" for certain forward-looking statements. Businesses typically include a form of disclaimer stating that any examples of forward-looking statements found in their material are only true at time of writing, and they further claim that they have no obligation to update such written statements if conditions change or unforeseen events occur to influence the statements thereafter. However, such forward-looking statements should be identifiable using certain specified words. This action allows the company to make speculative statements based on current market trends or research directions without fear of major impact, while ensuring that potential investors are informed of the speculative nature of the statement.

Linguistic perspective

Sentences and phrases are forward-looking statements when they enter any tension from now to next or similar inflections. Words like "believe," "predict," "anticipate," "plan," "predict," "may," "hope," "can," "will," "should," "expect," " "" designed for "," with purpose "," potential ", negative words of these words or other variations on it or comparable terminology, may indicate forward-looking statements, but their absence does not mean that statements are not forward-looking.

Maps Forward-looking statement

Example

Here are some hypothetical examples of forward-looking statements:

• The company X plans to build new facilities in Asia by 2018, expanding our current market share.
• We anticipate our company's value to continue increasing over the next few years, increasing dividends for shareholders.
• We estimate that our products will revolutionize the health care industry, improving the quality of health care for millions of patients.

An example of a secure port statement that is generally given during a corporate earnings release (oracle - http://investor.oracle.com/files/events/2010/safe-harbor-080331.pdf):

Our discussion may include predictions, forecasts or other information that might be considered forward looking. Although these forward-looking statements represent our current assessment of what will happen in the future, they are subject to risks and uncertainties that may cause actual results to differ materially. You are warned not to rely too much on this forward-looking statement, which reflects our opinion only on the date of this presentation. Please note that we do not require that we revise or release revised results to this forward-looking statement in front of any new information or future events. Throughout today's discussions, we will try to present some important factors related to our business that may affect our predictions. You should also review the latest Form 10-K and Form 10-Q for a more complete discussion of these and other risks, especially under the heading "Risk Factors." PDF copies of our press releases and financial tables that include GAAP for non-GAAP reconciliation can be viewed and downloaded on the Oracle Investor Relations website at Oracle.com/investor.

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See also

• Initial public offering
• Prospectus

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Note

1. ^ The Registry's interpretation of Judge Chandler's decision, "lies... [can not] obtain protection as a forward-looking statement" [1]

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References

• Schneider, Carl W.; Dubow, Jay A., " Information ahead - navigating at safe harbor ", Business Lawyer, August 1996.

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External links

• History and legal analysis of forward-looking statements

Source of the article : Wikipedia