Logourl black

Magnitude-Probability Test


A test adopted by the Supreme Court in Basic Inc. v. Levinson, 485 U.S. 224 (1988), to determine whether facts are material. Under the probability-magnitude test, materiality is determined by balancing the probability that an event will happen against the potential magnitude of the event in light of the totality of the company activity.

Related Rules [?]

The related rules section is for members only and includes a compilation of all the rules of law in Quimbee's database relating to this key term.

To access the related rules, please start your free trial or log in.