A material fact is a piece of information that has a significant impact on an investment or decision-making process. It refers to any event, circumstance, or detail that could influence someone's judgment when making choices about buying or selling assets, entering into contracts, or engaging in other business activities. Material facts are considered essential for full disclosure and transparency in financial transactions, as they provide crucial information about the risks, opportunities, and potential outcomes of a particular investment. Failure to disclose material facts can result in legal consequences, such as fraud or misrepresentation charges.