Matty Is an Employee of ValCom but Doe Not Own

question 3

Multiple Choice

Matty is an employee of ValCom but doe not own any ValCom stock. At her five year employment anniversary, she decides to buy 50 shares of a new issue of company stock as a savings plan and afterward receives the signed registration statement.  Because of her employment at ValCom, she recognizes that the statement contains an untrue material fact. Can she sue the auditor?

• A) Yes, under Section 11, proof of reliance is usually not required.
• B) Yes, if she can prove she would not have bought the stock otherwise.
• C) No, because she did not rely on the statement.
• D) No, because there is no privity between Matty and the auditor.

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Definitions:

Pain Medication

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