Usually, unlike common-law misrepresentation, under the Act of 1933, an investor need not show that she relied on false or misleading registration statements.

Question

Quizplus · Accepted Answer

This is true. Under the Securities Act of 1933, an investor need not prove that they specifically relied on the information provided in the registration statement. It is enough to show that the statement was false or misleading and that the investor suffered a loss as a result of the misrepresentation. This is known as strict liability.

Usually, Unlike Common-Law Misrepresentation, Under the Act of 1933, an Investor