Quincy bought Teal Corp. common stock in an offering registered under the Securities Act of 1933. Worth & Co., CPAs, gave an unqualified opinion on Teal's financial statements that were included in the registration statement filed with the SEC. Quincy sued Worth under the provisions of the 1933 Act that deal with omission of facts required to be in the registration statement. Quincy must prove that:

Question

Quizplus · Accepted Answer

Under the Securities Act of 1933, a plaintiff must prove that there was a material misstatement or omission in the registration statement to hold an accountant liable. Fraud, reliance, or privity are not required elements to prove under this act.

Quincy Bought Teal Corp