Quincy Bought Teal Corp

question 48

Multiple Choice

Quincy bought Teal Corp. common stock in an offering registered under the Securities Act of 1933. Worth & Co., CPAs, gave an unqualified opinion on Teal's financial statements that were included in the registration statement filed with the SEC. Quincy sued Worth under the provisions of the 1933 Act that deal with omission of facts required to be in the registration statement. Quincy must prove that:

• A) There was fraudulent activity by Worth.
• B) There was a material misstatement in the financial statements.
• C) Quincy relied on Worth's opinion.
• D) Quincy was in privity with Worth.

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Definitions:

Months

Divisions of the year into twelve periods, each with a specific name, used as a unit of time.

Asperger's Disorder

A developmental disorder characterized by difficulties in social interaction and nonverbal communication, along with restricted and repetitive patterns of behavior and interests. It's now part of the autism spectrum disorder in the DSM-5.

Social Deficits

A lack of ability to perform and interact in social situations appropriately, which can affect relationships and communication skills.

Stereotyped Behavior

Repetitive or ritualistic movement, posture, or utterance, often associated with cognitive or developmental disorders.