Martha is an accountant who helped Oltup,Inc.to file registration statements with the SEC.Oltup,Inc.then sold some of its securities.Sandra,who purchased the securities,finds that there are quite a few misleading statements,and she files a lawsuit under Section 18(a)of the Securities Exchange Act of 1934.Which of the following statements is true of this scenario?

Question

Quizplus · Accepted Answer

BMartha can defeat liability under Section 18(a) if she can prove that Sandra was aware of the misleading statements when purchasing the securities, as this section allows for a defense if the buyer knew about the inaccuracies. Additionally, under Section 18(a), liability does not depend on the defendant's state of mind, so Martha could be held liable even if she acted in good faith and was not negligent. This section imposes liability for false or misleading statements in any document filed with the SEC, regardless of the defendant's intent, provided the plaintiff relied upon the statements.

Martha Is an Accountant Who Helped Oltup,Inc