If a plaintiff is successful in proving that an auditor has violated Section 10(b)of the 1934 Securities Exchange Act,the auditor has
A)primary liability.
B)secondary liability.
C)contingent liability.
D)rebuttable liability.

Question

Quizplus · Accepted Answer

Section 10(b) of the 1934 Securities Exchange Act makes it illegal for an individual or entity to engage in fraudulent activities in connection with the purchase or sale of securities. If a plaintiff successfully proves that an auditor violated this section, the auditor will be held responsible for their actions and will have primary liability. Primary liability means that the individual or entity is directly responsible for the harm caused to the plaintiff and can be sued for damages. Therefore, the best choice is option A) primary liability.

If a Plaintiff Is Successful in Proving That an Auditor