If a Registration Statement Contains a Material Misstatement or Omission

question 42

Multiple Choice

If a registration statement contains a material misstatement or omission

• A)the company is liable and has no defense.
• B)anyone other than the company who signed the statement is liable and has no defense.
• C)all experts are liable and have no defense.
• D)the company is liable unless it can show due diligence.

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Definitions:

Buffer

A temporary storage area, typically in memory, used to hold data while it is being transferred from one place to another.

Justification Material

Evidence or reasoning presented to support an argument or decision.

Strategic Buffer

A tactic or method used in communication to mitigate potential negativity or soften the delivery of a message.

Bad-News Message

A type of communication that delivers unfavorable or disappointing information to the recipient.