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What Rights Do Secondary Investors (I

Question 34

Multiple Choice

What rights do secondary investors (i.e. those who purchase shares after an initial offering) have to sue an auditor?


A) Since they are third-party claimants, they would be part of a limited class of known users.
B) They could claim contributory negligence since they had prior information of company results.
C) They can sue under provincial legislation without the need to prove reliance.
D) Since there is absence of causal connection, they would not be able to sue the auditors.

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