Mere promotion of a security makes a person a seller and,therefore,liable under section 5 of the 1933 Act based upon the sale of a security without an effective registration statement or by means of a noncomplying prospectus.

Question

Quizplus · Accepted Answer

The mere promotion of a security does not make a person a seller under the 1933 Act. Liability under Section 5 requires involvement in the actual sale or offer to sell a security without an effective registration statement or through a noncomplying prospectus.

Mere Promotion of a Security Makes a Person a Seller