Under Section 11 of the Securities Act of 1933,a Plaintiff

question 114

Multiple Choice

Under section 11 of the Securities Act of 1933,a plaintiff suing for damages must prove

• A) A privity relationship with auditors.
• B) Reliance on the financial statements in registration statement.
• C) Materially misstated financial statements caused the damages or loss.
• D) Damages or loss from the purchase of securities.

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Definitions:

GAAP

Generally Accepted Accounting Principles, which are a set of rules and standards designed to improve the clarity, consistency, and comparability of financial reporting across industries.

Insider Trading

The illegal practice of trading a company's stock or other securities by individuals with access to non-public, material information about the company.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide how financial statements are prepared and presented globally.

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the United States.