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Claire Works for Mattco but Owns No Mattco Stock

Question 32

Multiple Choice

Claire works for Mattco but owns no Mattco stock.She buys 10 shares of a new issue of company stock and afterward receives the signed registration statement,which contains an untrue statement of material fact.Because Claire works for Mattco,she recognizes the error.Can Claire sue the auditor?


A) Yes,under Section 11,reliance is usually not required.
B) Yes,if she can prove she would not have bought the stock otherwise.
C) No,because she did not rely on the statement.
D) No,because there is no privity between Barbara and the auditor.

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