TeeVee News, Inc. decides to initiate a stock sale. The president of TeeVee purposefully inflates the numbers on stock performance to make the company's history appear more successful than it truly was. The president may take such action to insure the success of the stock offering without accruing any personal liability.

Question

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If a stock seller makes an untrue or a misleading statement of a material fact, he/she will be subject to liabilities resulting from anyone who acts in reliance on that information.