Which of the Following Statements About the Securities Act of 1933

question 1

Multiple Choice

Which of the following statements about the Securities Act of 1933 is not true?

• A)The plaintiff must prove damages or an economic loss.
• B)The plaintiff must prove they read and relied upon the financial statements.
• C)Any purchaser of securities may sue auditors.
• D)The plaintiff need not prove that the materially misstated financial statements are the direct cause of the loss.

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Definitions:

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Currencies

Systems of money in common use, particularly for people in a nation.