The president of a company says that new products to be introduced are sure to double company profits. Based on this, investors buy stock in the company, pushing up its price. The products flop, the company loses money, so the stock price falls. Investors are most likely to sue the president of the company under what theory provided by the securities law?
A) liability for mutual securities fraud
B) liability for insider trading
C) liability for securities negligence
D) liability for proxy fraud
E) none of the other choices
Correct Answer:
Verified
Q319: Under _, any person who buys a
Q320: In a suit for fraud against the
Q321: Under the securities law, liability for misstatements:
A)
Q322: The Securities Litigation Reform Act of 1995:
A)
Q323: Under securities law, misleading information that would
Q325: Overly optimistic statements by executives are:
A) occasionally
Q326: Fraud in securities dealings may be litigated
Q327: The SEC may sue those alleged to
Q328: Under the securities law, liability for misstatements:
A)
Q329: The Securities Litigation Reform Act of 1995:
A)
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