A Buyer or Seller of Stock Can Only Recover Damages

question 9

Multiple Choice

A buyer or seller of stock can only recover damages if a material fact is misrepresented or omitted from company communications.All of the following are considered material facts,EXCEPT:

• A) statements about corporate earnings.
• B) compensation of corporate officers.
• C) statement of corporate optimism.
• D) statements about corporate assets.

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Definitions:

Procedures

Established methods for conducting tasks or activities within an organization, aimed at achieving consistency and efficiency.

Performing a Task

The act of undertaking and completing a specific job, duty, or assignment.

Process Controls

Mechanisms and procedures implemented to regulate and optimize the performance of processes within an organization.

Formalization

Is written documentation of work rules, policies, and procedures.