Akira Purchased a Certain Number of Securities and Incurred Losses

question 17

Multiple Choice

Akira purchased a certain number of securities and incurred losses due to a decline in the price of securities in the market. She held her accountant, Jason, liable for her entire loss. Given this information, which of the following statements is true?

• A) Jason can be held liable because he did not demonstrate that the purchaser was aware of the omissions in the registration statement before buying the securities.
• B) Akira can hold Jason liable for her losses because an accountant is liable to any purchaser of securities issued pursuant to a defective registration statement.
• C) Jason cannot be held liable because the losses were totally unrelated to the accountant's negligence.
• D) Akira can hold Jason liable for her losses because he did not prove that he made a reasonable investigation and reasonably believed that the certified financial statements were accurate.

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Definitions:

Psychiatrist's Theory

A hypothesis or set of hypotheses proposed by a psychiatrist that attempts to explain behavioral, psychological, or mental disorders.

Binomial Random Variable

A type of random variable that assumes only two possible outcomes, success or failure, in a series of independent trials with a constant probability of success.

Binomial Formula

A mathematical formula used to determine the probability of obtaining a fixed number of successes in a specific number of trials in a binomial experiment.

Standard Deviation

An indicator of the degree to which values in a dataset spread out or deviate from the average value of the collection.