Question

Pat, an accountant, includes a false statement in a report for Quantity Overstock, Inc., that is filed with the Securities and Exchange Commis­sion. Quantity publishes a misleading ad about its future prospects. Rita sees the ad and calls Stan, who buys stock in Quantity. Under Section 18 of the Securities Ex­change Act of 1934, liability may attach to
a. Pat's report.
b. Quantity's ad.
c. Rita's call.
d. Stan's purchase.

Answer

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