As part of a stock offering for Designer Studio Corporation, the firm's accountant Evelyn intention?ally misrepresents material facts in the pro?spectus. Flores buys the stock unaware of the misrepresentation and suf?fers a loss. Evelyn may be subject to

Question

Quizplus · Accepted Answer

Evelyn's intentional misrepresentation of material facts in the prospectus violates securities laws, and as a result, she may be facing criminal penalties such as a fine and imprisonment. Additionally, Flores suffered a loss due to the misrepresentation, and as such, Evelyn may also be subject to civil liability for damages. Therefore, the correct choice is C, which includes a fine, imprisonment, and damages.

As Part of a Stock Offering for Designer Studio Corporation