As part of a stock offering for Design Studio Corporation, the firm's accountant Eve intentionally misrepresents material facts in the prospectus. Fred buys the stock unaware of the misrepresentation and suffers a loss. Eve may be subject to

Question

As part of a stock offering for Design Studio Corporation, the firm's accountant Eve intentionally misrepresents material facts in the prospectus. Fred buys the stock unaware of the misrepresentation and suffers a loss. Eve may be subject to​

Quizplus · Accepted Answer

Intentionally misrepresenting material facts in a stock offering prospectus is illegal and can result in both criminal and civil liability. Eve may face fines, imprisonment, and be liable for damages suffered by investors like Fred. Job termination and professional censure may also be possible consequences, but they alone are not sufficient to address the wrongdoing.

As Part of a Stock Offering for Design Studio Corporation