Claire Works for Mattco but Owns No Mattco Stock

question 32

Multiple Choice

Claire works for Mattco but owns no Mattco stock.She buys 10 shares of a new issue of company stock and afterward receives the signed registration statement,which contains an untrue statement of material fact.Because Claire works for Mattco,she recognizes the error.Can Claire sue the auditor?

• A) Yes,under Section 11,reliance is usually not required.
• B) Yes,if she can prove she would not have bought the stock otherwise.
• C) No,because she did not rely on the statement.
• D) No,because there is no privity between Barbara and the auditor.

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