Quin,an accountant,prepares for Reddy,Inc.,a financial state?ment that omits a material fact.The statement is included in Reddy's registration statement with the Securities and Exchange Commission.Timor,who reads the statement,and Ubi,who does not,each buy Reddy stock.Velma reads the statement but does not buy the stock.Under Section 11 of the Securities Act of 1933,Quin may be liable to

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Under Section 11 of the Securities Act of 1933, liability is imposed on those who prepare or sign registration statements containing material misstatements or omissions. Quin may be liable to Timor, who relied on the statement and purchased the stock, and Ubi, who purchased the stock even without reading the statement. Velma, who did not purchase the stock, cannot claim damages under Section 11.

Quin,an Accountant,prepares for Reddy,Inc