Which of the following statements about the Securities Act of 1933 is not true?
A)The plaintiff must prove damages or an economic loss.
B)The plaintiff must prove they read and relied upon the financial statements.
C)Any purchaser of securities may sue auditors.
D)The plaintiff need not prove that the materially misstated financial statements are the direct cause of the loss.

Question

Quizplus · Accepted Answer

The plaintiff is not required to prove that they read and relied upon the financial statements, as long as the misstatements were material and affected the market value of the securities.

Which of the Following Statements About the Securities Act of 1933