With Respect to "Section 11" Actions Under the Securities Act

question 95

Multiple Choice

With respect to "Section 11" actions under the Securities Act of 1933 and Rule 10b-5 actions under the Securities Exchange Act of 1934,intent must be proven:

• A) in both Section 11 and Rule 10b-5 actions.
• B) in Section 11 actions, but not in Rule 10b-5 actions.
• C) in Rule 10b-5 actions, but not in Section 11 actions.
• D) in neither Section 11 actions, nor in Rule 10b-5 actions.
• E) in both Section 11 and Rule 10b-5 actions, but only if a possible jail sentence is involved.

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Definitions:

Primary Market Transaction

A primary market transaction involves the initial issuance and sale of securities directly from the issuer to investors, as opposed to secondary market trading where investors buy and sell securities among themselves.

Investment Banker

A professional or firm that acts as an intermediary in large and complex financial transactions, such as mergers, acquisitions, and public offerings.

Public Stock Offering

The process by which a company sells its stock to the general public for the first time, known as an initial public offering (IPO).

TSX

The Toronto Stock Exchange, one of the largest stock exchanges in the world, based in Canada.