The damages of a defrauded purchaser of securities:
A) are measured at the time of purchase.
B) include a punitive amount to discourage further fraud.
C) are measured at the time the fraud is discovered.
D) are considered a "sunk cost" and are not recoverable.
E) include speculative damages.

Question

Quizplus · Accepted Answer

The damages of a defrauded purchaser are actual out-of-pocket losses or the excess of what was paid over the value of what was received. A buyer's damages are measured at the time of purchase.

The Damages of a Defrauded Purchaser of Securities