Businesses that have issued stock in a public or private sale (both exempt and nonexempt) and are alleged to have violated the anti-fraud provisions of the Securities Exchange Act of 1933 have one defense at their disposal.

Question

Quizplus · Accepted Answer

The Securities Exchange Act of 1933 primarily addresses the issuance of securities and aims to ensure transparency in financial statements so investors can make informed decisions. Violations of its anti-fraud provisions can be defended against using various strategies, not just one. These might include proving the information was not misleading, the accused did not act with intent or knowledge of wrongdoing, or the investors did not rely on the misleading information when making their investment decision.

Businesses That Have Issued Stock in a Public or Private