Asked by Khush Bhullar on Jun 27, 2024
Verified
Who amongst the following is an "expert" under Section 11 of the Securities Act of 1933?
A) A consultant who is an independent director of a company making a public distribution of securities.
B) An auditor who issues an opinion regarding financial statements of a company making a public distribution of securities.
C) An accountant in the accounts division of a publicly traded company that is issuing new securities to the public.
D) An underwriter who is involved in issuance of new securities to the public by a publicly traded company.
Section 11
A provision of the Securities Act of 1933 that holds issuers liable for providing false statements in their registration statements, designed to protect investors.
Securities Act of 1933
A U.S. federal law that regulates the sale of securities to the public, requiring full transparency through the registration of securities.
Expert
An individual with a high level of knowledge or skill in a particular area, typically acquired through education, training, or extensive experience.
- Absorb the significance of securities regulations such as the Securities Act of 1933 and the Securities Exchange Act of 1934 with respect to the roles and legal responsibilities of accountants.
Verified Answer
DR
Dhaivat RavalJun 27, 2024
Final Answer :
B
Explanation :
The most common "expert" under Section 11 of the Securities Act of 1933 is an auditor who issues an opinion regarding financial statements of a company making a public distribution of securities.
Learning Objectives
- Absorb the significance of securities regulations such as the Securities Act of 1933 and the Securities Exchange Act of 1934 with respect to the roles and legal responsibilities of accountants.