Which of the following statements is true of Section 18(a)of the Securities Exchange Act of 1934?
A) A plaintiff can recover damages by filing a negligence case under Section 18(a).
B) A plaintiff in a Section 18(a) action must prove that they relied on the misleading statement and that it affected the price of the security.
C) An accountant is liable even if he or she acted in good faith while making misleading statements of material facts.
D) An accountant is liable even if the plaintiff was aware of the misleading statement when the securities were sold.

Question

Quizplus · Accepted Answer

Section 18(a) imposes liability on any person who makes or causes to be made a false or misleading statement in connection with the sale or purchase of a security. In a Section 18(a) action, the plaintiff must prove that they relied on the misleading statement and that it affected the price of the security. The other statements (A, C, and D) are not true of Section 18(a).

Which of the Following Statements Is True of Section 18(a)of