A Security Is Sold to the Public Under a Private

question 296

Multiple Choice

A security is sold to the public under a private placement exemption. Later a suit is filed under federal securities law claiming securities fraud. This suit will:

• A) fail since the security is not subject to the federal law since it was sold under an exemption
• B) fail since the security is not subject to the federal law since it was sold under an exemption⎯unless there were subsequent financial disclosures to the SEC
• C) fail since the security is not subject to the federal law since it was sold under an exemption⎯unless a private common law fraud suit has already prevailed
• D) be allowed since all securities are subject to the law
• E) none of the other choices

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Definitions:

Lymphoid Cells

Cells that are part of the immune system, including B cells, T cells, and natural killer cells, which play roles in adaptive and innate immunity.

Lymph Filter

A term not commonly used in medical literature but may refer to lymph nodes which filter harmful substances from the lymph fluid.

Lymphatic System

A vital part of the immune system, consisting of organs, ducts, and nodes that transport lymph, a fluid containing infection-fighting white blood cells, throughout the body.

Lymphocytes

A type of white blood cell involved in the immune response, playing a role in protecting the body against infections and diseases.