Space Trips Inc

question 58

Multiple Choice

Space Trips Inc. files a registration statement with the SEC before making an offering to the general public. The registration contains false, immaterial statements of which the investors are unaware. The firm is charged with violating the Securities Act of 1933. Its best defense is​

• A) ​the investors were not aware of the misrepresentations.
• B) ​the issuer reasonably believed the misstatements were true.
• C) ​the offering was made available to the general public.
• D) ​the untrue statements were not material.

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Definitions:

Tracheostomy

A medical procedure that involves creating an opening in the neck to place a tube into a person’s windpipe to allow air to enter the lungs.

Tenacious Secretions

Thick and sticky bodily fluids that are difficult to expel, often associated with respiratory conditions.

Tracheal Suctioning

A medical procedure used to remove mucous, blood, or other secretions from the trachea to maintain an open and clear airway for breathing.

Hemoptysis

The coughing up of blood or bloody mucus from the lungs or airway.