When Investors Sue for Damages Under Section 11 of the Securities

question 41

Multiple Choice

When investors sue for damages under section 11 of the Securities Act of 1933,they must allege and prove

• A) Scienter on the part of auditors.
• B) The audited financial statements contained a material misstatement.
• C) They relied on the materially misstated financial statements.
• D) Their reliance on the materially misstated financial statements was the direct cause of their loss.

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Definitions:

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, often measured as an indicator of heart health.

Cardioregulatory Center

A region of the brain, specifically in the medulla oblongata, that regulates heart rate and blood pressure by coordinating the autonomic nervous and the cardiovascular systems.

Vasodilator Substance

Chemicals that relax and expand blood vessels, increasing blood flow and decreasing blood pressure.

Epinephrine

Hormone (amino acid derivative) similar in structure to the neurotransmitter norepinephrine; major hormone released from the adrenal medulla; increases cardiac output and blood glucose levels; also called adrenaline.