Quentin,an accountant,prepares for Ruff n' Reddy Concrete Corporation a financial statement that omits a material fact.The statement is included in Ruff n' Reddy's registration statement filed with the Securities and Exchange Commission.Timor,who reads the statement,and Ubi,who does not,each buy Ruff n' Reddy stock.Under Section 11 of the Securities Act of 1933,Quentin may be liable to

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Section 11 of the Securities Act of 1933 states that any person who issues a registration statement containing a material misstatement or omission is liable to any person who buys a security based on that statement. In this case, Quentin prepared a financial statement that omitted a material fact, which was included in Ruff n' Reddy's registration statement filed with the SEC. Both Timor and Ubi purchased Ruff n' Reddy stock based on this statement, so Quentin may be liable to both of them under Section 11.

Quentin,an Accountant,prepares for Ruff N' Reddy Concrete Corporation a Financial