Final answer:
The statement that a material fact could deter a prudent investor from buying securities if it were disclosed is true. Material facts must be disclosed to investors, aligning with both legal standards and the old Latin saying 'Caveat emptor'—let the buyer beware.
Step-by-step explanation:
The statement is true. A material fact in the context of securities is information that would influence a reasonable investor's decision to buy or sell a security. When material facts are misrepresented or omitted, it can lead to securities fraud. In the context of advertising more generally, the Federal Trade Commission (FTC) checks claims for accuracy to some degree. While exaggerated or ambiguous language and images are permissible, outright false statements are prohibited. This responsibility on investors to be cautious is encapsulated by the Latin phrase 'Caveat emptor', meaning 'let the buyer beware'.
In the realm of investing, if an average, prudent investor would be deterred from purchasing securities upon learning a certain fact, this fact is indeed considered material. Such material facts must be correctly stated or disclosed in order to maintain transparency and trust in the marketplace. The final answer, in a two-line explanation, is that the given statement reflects the legal and regulatory standards intended to protect investors and support the integrity of financial markets.