When Bringing Suit Against Auditors Under Section 10(b)of the Securities

question 1

Multiple Choice

When bringing suit against auditors under section 10(b) of the Securities Exchange Act of 1934,plaintiffs must allege and prove

• A) the financial statements in the offering registration filing contained a material misstatement.
• B) auditors were aware of material misstatements in the financial statements.
• C) auditors were guilty of ordinary negligence and failed to discover material misstatements in the financial statements.
• D) the plaintiffs purchased the specific securities through a public offering and thus have a right to sue.

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Definitions:

Desire to Succeed

A strong motivation or drive to achieve goals and excel in various endeavors.

Components of Emotion

The essential elements that constitute a person's emotional experience, typically described as cognitive appraisals, physiological responses, and expressive behaviors.

Behavioural

Pertains to the observable actions or responses of an organism, often studied in psychology to understand the underlying mental processes and motivations.

Cognitive

Relating to mental processes such as perception, memory, thinking, and problem-solving.