Space Trips Inc. 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. The firm is charged with violating the Securities Act of 1933. Its 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.
Food Service Corporation, and its officers, directors, and shareholders, buy and sell securities. Section 10(b) of the Securities Exchange Act of 1934 applies to the purchase or sale of a security
A) only by an investment company.
B) only involving short-swing profits.
C) only involving a tipper and tippee.
D) in almost any circumstances.
Refer to Fact Pattern 42-2. If Ben is liable under the Securities Exchange Act of 1934, it will be because the information on which he based his purchase of AirLift stock was
A) a forward-looking forecast.
B) not material.
C) not yet public.
D) not yet true.
Refer to Fact Pattern 42-2. Under the Securities Exchange Act of 1934, Carly is most likely
A) liable for insider trading.
B) not liable because Carly did not prevent others from profiting.
C) not liable because Carly did not solicit information from Ben.
D) not liable because Carly does not work for AirLift.