Materiality
Definition
What is Materiality?
The importance of information to a reasonable investorA person or organisation that commits capital with the expectation of a financial return.'s decision or to financial statements.
Example in practice
How This Looks in Practice
A small error may be immaterial while a covenantA contractual promise or restriction designed to protect lenders or govern borrower behaviour. breach is material.
Keep learning
Related Terms
Fiduciary Duty
A legal or ethical duty to act loyally and carefully in another person's best interest.
Regulation & ComplianceSuitability
The requirement or process of determining whether an investment fits a client's circumstances and objectives.
Regulation & ComplianceBest-Interest Standard
A duty to place the client's interests ahead of the provider's when making a recommendation.
Nigeria InvestingNigerian Exchange
Nigeria's principal securities exchange, where listed shares, bonds, ETFs, and other instruments trade.