An investor is entitled to bring a civil suit to recover his or her losses if the investor purchased securities and suffered damages as a result of an issuer's false or misleading statement.

Question

Quizplus · Accepted Answer

Investors can bring a civil suit under securities laws (such as the Securities Act of 1933 and the Securities Exchange Act of 1934 in the United States) if they suffer losses due to an issuer's false or misleading statements, as these laws are designed to protect investors from fraud and misrepresentation in the securities market.

An Investor Is Entitled to Bring a Civil Suit to Recover