Liability under Section 11 is imposed on issuers who are negligent in not discovering fraud in their security offerings.

Name: Liability under Section 11 is imposed on issuers who are negligent in not discovering fraud in their security offerings.
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Question

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Section 11 of the Securities Act of 1933 holds issuers liable for any material misstatements or omissions in a registration statement, regardless of intent, effectively imposing liability for negligence.

Liability Under Section 11 Is Imposed on Issuers Who Are