GR8 Stuf Company Files a Registration Statement with the SEC

question 31

Multiple Choice

GR8 Stuf Company files a registration statement with the SEC before making an offering to the general public.The registration contains false,immaterial statements of which the investors are unaware.GR8 Stuf is charged with violating the Securities Act of 1933.GR8 Stuf's best defense is

• A)the investors were not aware of the misrepresentations.
• B)the issuer reasonably believed the misstatements were true.
• C)the offering was made available to the general public.
• D)the untrue statements were not material.

---

Definitions:

Muslims

Followers of Islam, a monotheistic Abrahamic religion based on the Quran.

Governments

The organizations or systems through which a community, state, or nation is controlled and administered.

Federal Statute

A law enacted by the national government and applicable across the entire country, part of the body of federal laws created by the legislative branch.