Which One of the Following Is Not True of Section

question 26

Multiple Choice

Which one of the following is not true of Section 18 of the 1934 Securities Exchange Act?

• A) allows recovery for simple negligence
• B) requires the person sued to prove they acted in good faith
• C) allows both buyers and sellers of the securities to recover
• D) does not normally apply to annual reports issued to shareholders
• E) plaintiff must be either a buyer or seller of the security

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Definitions:

Competitive Equality Banking Act

A U.S. law aimed at promoting competition among banks and equalizing regulatory standards across different types of banking institutions.

Nonlocal Check

A check written on an account at a bank which is located outside the local check-processing region of the bank at which it is deposited.

Depositary Bank

A financial institution that holds and manages securities deposits and facilitates trading of these financial assets.

Drawee Bank

Drawee bank refers to the bank upon which a check or draft is drawn, responsible for paying the specified amount of money to the entity presenting the check for payment.