Henry Prepared a Registration for the First Issuance of Stock

question 48

Essay

Henry prepared a registration for the first issuance of stock of the Winzell Corporation.Henry took the assignment very seriously and spent a great deal of time preparing the statement.Two years after the statement was filed,the SEC began to investigate the company and claims that the information in Henry's statement was misleading,because some of the information given to him by the corporation was false.Henry had tried to verify the information,but was not able to do so.An investor is now suing Henry claiming that he violated the 1933 act.Is Henry liable?

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Definitions:

Financial Account

A component of the balance of payments that records transactions involving financial assets and liabilities between residents of a country and non-residents.

Oil Imported

The total volume of crude oil and petroleum products that a country acquires from foreign sources to meet its energy and fuel needs.

Dividends

Payments by a corporation of all or part of its profit to its stockholders (the corporate owners).

Direct Investment

Describes the process of acquiring a controlling interest in foreign assets, such as a company or property, with the aim of managing the investment directly.