The Turnover Corporation, a firm with 25,000 employees, has recently hired 50 new employees, many...

Turnover is guilty of nothing when it hires 50 new employees, but doesn’t include this information in its prospectus because this is not a material fact. Most of the employees have been hired to replace middle-level managers who have retired, and these employees wouldn’t be considered significant enough to affect the price of the stock in any way. If Turnover had hired a new CEO, that would be a material fact that must be disclosed.