Which of the Following Is True Regarding What a Plaintiff

question 39

Multiple Choice

Which of the following is true regarding what a plaintiff must do in order to recover damages under the Securities Act of 1933 after purchasing a security covered by a registration statement containing false information or missing information?

• A) A plaintiff must prove reliance on the registration statement.
• B) A plaintiff must prove privity with the accountant at issue.
• C) The plaintiff must establish reliance and privity.
• D) The plaintiff must establish reliance on the financial statement, privity with the accountant, and also that the securities were purchased in an initial public offering.
• E) The plaintiff does not have to prove reliance on the financial statement nor must the plaintiff prove contractual privity.

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Definitions:

Sustainability

Acting in ways that support a high quality of life for present and future generations.

Wealth

The abundance of valuable resources or material possessions, or the control of such assets which enables an individual or community to sustain and improve their well-being.

Strategic Management Process

A systematic approach to planning and guiding an organization’s strategy over time.

Mission

A statement that expresses the organization’s reason for existence in society.