Respuesta :
False.
Management cannot withhold any information regarding future events solely to prevent a share price decline. Publicly traded companies are legally required to disclose material information that could potentially impact their stock prices to ensure fair and equal access to information for all investors. This is known as the principle of full and fair disclosure.
If management intentionally withholds material information that could affect the share price, they may be violating securities laws and regulations, such as insider trading laws. These laws aim to promote transparency, prevent market manipulation, and protect the interests of investors.
However, it is important to note that companies may have specific guidelines and legal restrictions on when and how they disclose certain information. For example, they may have blackout periods before major announcements or when they are in the process of negotiating deals that could impact the share price.
In summary, management cannot withhold information solely to prevent a share price decline. They have a legal obligation to disclose material information, but there may be specific circumstances or restrictions that govern the timing and manner of disclosure.
