Section 11 of the Securities Act of 1933 provides:

Question

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Section 11 of the Securities Act of 1933 imposes civil liability for misstatements in a registration statement, including false or misleading statements of material fact, or omissions of material fact necessary to make other statements not misleading. Liability under Section 11 arises for both intentional misstatements and for misstatements due to negligence. The provision does not include criminal liability, nor does it address the issue of selling securities without a prospectus.

Section 11 of the Securities Act of 1933 Provides