Against a Charge of a Violation of the Securities Act

question 9

True/False

Against a charge of a violation of the Securities Act of 1933, only an issuer of stock can assert the due diligence defense.

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Definitions:

Operating Results

Operating Results refer to the financial outcomes derived from a company's core business operations, excluding non-operating income and expenses, reflecting the company's operational effectiveness.

Operating Capability

Refers to the ability of a company to maintain efficient operations and sufficient capacity to support its business activities.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations by comparing its current assets to its current liabilities.