Under the Securities Act of 1933, a Third-Party Plaintiff Does

question 44

True/False

Under the Securities Act of 1933, a third-party plaintiff does not have the burden of proof that he or she relied on the financial statements or that the auditor was negligent or fraudulent in doing the audit. Rather, the plaintiff need only prove that the audited financial statements contained a material misrepresentation or omission.

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Definitions:

Energy-Wasting

The inefficient use of energy that leads to unnecessary consumption and increased environmental pollution.

Hydropower

A method of generating electricity by converting the energy of flowing or falling water.

Active Solar Heating

A system that uses solar energy to heat a fluid, usually water or air, and then circulates it to transfer heat directly to the interior space or to a storage system for later use.

Heat-Absorbing Fluid

A fluid that absorbs heat during a process, used in various applications such as heating and cooling systems.