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:

Opportunistic Infections

Infections that occur more frequently and are more severe in individuals with weakened immune systems, such as those with HIV/AIDS.

Immune System

The body's defense system against infections and diseases, comprising organs, tissues, cells, and proteins that work together to combat harmful pathogens.

Disproportionately

To an extent that is too large or too small in comparison with something else.

Racial

Relating to the categorization of people based on physical and genetic characteristics such as skin color and facial features.