Which of the Following Statements About the Securities Act of 1933

question 1

Multiple Choice

Which of the following statements about the Securities Act of 1933 is not true?

• A)The plaintiff must prove damages or an economic loss.
• B)The plaintiff must prove they read and relied upon the financial statements.
• C)Any purchaser of securities may sue auditors.
• D)The plaintiff need not prove that the materially misstated financial statements are the direct cause of the loss.

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Definitions:

Protective Tariffs

Import taxes imposed by a country on foreign goods to protect domestic industries from competition by making imported goods more expensive.

Comparative Advantage

The capacity of an entity to generate a product or service with a lesser opportunity cost compared to others.

Protectionist Argument

The rationale for implementing trade barriers, such as tariffs and quotas, to protect domestic industries from foreign competition.

Dumping

Selling goods in a foreign market at a price below the cost of production or below the price in the home market, often to gain market share.