Which of the Following Is Something That the Plaintiff Must

question 61

Multiple Choice

Which of the following is something that the plaintiff must prove in order for an accountant to be liable for damages under Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934?

• A)The accountant was ordinarily negligent.
• B)There was a material omission.
• C)The security involved was stock.
• D)The security was part of an original issuance.

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Definitions:

Total Debt

The sum of all liabilities, both current and long-term, that a company owes to external parties.

Net Worth

The total assets minus total liabilities of an individual or company, indicating financial health and stability.

Operating Income

Earnings before interest and taxes (EBIT), representing the profit a company makes after paying for variable costs of production but before paying interest or tax.

Depreciation Expenses

Depreciation expenses refer to the systematic allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value of the asset over time.