Barbara works for Chevco but owns no Chevco stock.She buys 10 shares of a new issue of company stock as a savings plan and afterward receives the signed registration statement, which contains an untrue statement of material fact.Because she works for Chevco, she recognizes the error.Can she sue the auditor?
A) Yes, under Section 11, reliance is usually not required.
B) Yes, if she can prove she would not have bought the stock otherwise.
C) No, because she did not rely on the statement.
D) No, because there is no privity between Barbara and the auditor.
Correct Answer:
Verified
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