Space Trips Inc

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. Space Trips is charged with violating the Securities Act of 1933. Space Trips's best defense is

A) the investors were not aware of the misrepresentations.
B) the investor reasonably believed the misstatements were true.
C) the offering was made available to the general public.
D) the untrue statements were not material.Fact Pattern 21-2 Eddie, an accountant for Fresh Dairy, Inc., learns of undisclosed company plans to market a new smooth-tasting, fat-free butter.Eddie buys 10,000 shares of Fresh Dairy stock.He reveals the company plans to Giselle, who buys 5,000 shares.Giselle tells Hong, who tells Irwin, each of whom buy 1,000 shares.They know that Giselle got her information from Eddie.When Fresh Dairy publicly announces its new product, Eddie, Giselle, Hong, and Irwin sell their stock for a profit.