Marianne makes a false statement about the future earnings potential of her company, DexaCom. Shareholders sue Marianne for securities fraud. These shareholders can file their lawsuit pursuant to:

a. federal and state securities laws.

b. federal laws only, as states generally do not have securities antifraud provisions.

c. state laws only, as federal law generally does not have securities antifraud provisions.

Question

Social Studies

Claudia Valdez

15 August, 00:55

Marianne makes a false statement about the future earnings potential of her company, DexaCom. Shareholders sue Marianne for securities fraud. These shareholders can file their lawsuit pursuant to:

a. federal and state securities laws.

b. federal laws only, as states generally do not have securities antifraud provisions.

c. state laws only, as federal law generally does not have securities antifraud provisions.

+1

Answers (1)

Know the Answer?

Harmony · Answer 1

The correct answer is A.

Explanation:

The federal and state security laws regulate the stock market and created a set of rules to protect investors against fraud. They can do this because they require any company to file a registration statement telling real and trustworthy information about itself