Which of the Following Statements Is True of Section 18(a)of

question 95

Multiple Choice

Which of the following statements is true of Section 18(a) of the Securities Exchange Act of 1934?

• A) A plaintiff can recover damages by filing a negligence case under Section 18(a).
• B) A plaintiff in a Section 18(a) action must prove that they relied on the misleading statement and that it affected the price of the security.
• C) An accountant is liable even if he or she acted in good faith while making misleading statements of material facts.
• D) An accountant is liable even if the plaintiff was aware of the misleading statement when the securities were sold.

---

Definitions:

Resale Price

The price at which an item is sold after it has been previously purchased or used.

Adverse Selection

A situation in financial markets where buyers and sellers have access to different levels of information, often leading to transactions where the party with less information is at a disadvantage.

Tech Support

A service provided by companies to help customers solve technical problems or issues related to their products or services.

Bureaucratic Structure

An organizational structure characterized by strict rules, a hierarchy of authority, and a clear division of labor.