Fast Auditors prepared audited financial statements for Mega Company's registration statement in compliance with the 1933 Securities Act. John bought stock in Mega Company. It was discovered that the financial statements prepared for the registration
statement contained some important omissions. John sued Fast Auditors to recover his investment when Mega Company turned out to be a bad investment. What must John prove to recover from Fast Auditors?
To prevail under the Securities Act of 1933, John must prove only that the registration statement contained a material misstatement or omission, and he lost money.
You might also like to view...
Which one of the following statements regarding changing inventory methods is true?
a. A change in inventory methods can be justified if the change is made to better match profits with revenue. b. One place that the reader of an annual report would be able to identify that a company changed inventory methods is the statement of stockholders' equity. c. Changing inventory methods affects consistency. d. Tax advantages are valid justification for changing inventory methods.
Business literature defines four types of capital.
Answer the following statement true (T) or false (F)
Installment Accounts Receivable are amounts owed by customers where payment is required in periodic amounts over time.
Answer the following statement true (T) or false (F)
If training is voluntary and outside of regular work hours but directly related to an employee's job, the employee would need to be paid for attending training.
Answer the following statement true (T) or false (F)