Under Section 11 of the Securities Act of 1933,in Order

question 2

Multiple Choice

Under Section 11 of the Securities Act of 1933,in order to establish the liability of an auditor who prepared a defective registration statement,a plaintiff must prove that:

• A) he/she purchased securities issued pursuant to the defective registration statement.
• B) the auditor was negligent in preparing the registration statement.
• C) the auditor acted with scienter in preparing the registration statement.
• D) he/she had privity of contract with the auditor.

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Definitions:

Supreme Court Rulings

Supreme Court rulings are decisions made by the Supreme Court, the highest court in the United States, which serve as precedents and guide the interpretation of the law.

Nullified

Made legally null and void; invalidated.

Withdraw

To remove oneself or an item from a particular situation or location, or to cease participation in an activity or membership.

Issue a Pardon

An executive act of granting forgiveness for a crime, typically by a governor or the president, which absolves the convict from serving the remainder of their sentence.