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.

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Definitions:

Legally Liable

Being subject to legal responsibility or obligation, particularly in the context of lawsuits or compensations.

Sole Proprietorship

A business ownership structure where a single individual owns, operates, and is responsible for all aspects of the business.

Personally Liable

The legal responsibility of an individual to compensate for debt or obligation from personal assets, not through corporate or shared assets.

Sole Proprietorship

A business structure where a single individual owns and operates the business, personally responsible for all its debts and liabilities.