To Be Successful in a Civil Action Under Section 11

question 46

Multiple Choice

To be successful in a civil action under Section 11 of the Securities Act of 1933 concerning liability for a misleading registration statement, the plaintiff must prove

• A) The plaintiff's reliance on the registration statement and the defendant's intent to deceive.
• B) Neither the plaintiff's reliance on the registration statement nor the defendant's intent to deceive.
• C) The plaintiff's reliance on the registration statement but not the defendant's intent to deceive.
• D) The defendant's intent to deceive but not the plaintiff's reliance on the registration statement.

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Definitions:

Cash Dividends

A cash distribution of profits by a corporation to its shareholders.

Investment Revenue

Income generated from investing capital, such as dividends, interest, or profits from asset sales.

Intangible Investments

Investments made in non-physical assets, such as patents, trademarks, and copyrights, that a company might make to boost its value or productivity.

Held-to-Maturity Debt Securities

Debt instruments that a company intends and is able to hold until they mature, recorded at amortized cost in the company's financial statements.