Series 10 Exam Question 28: Answer and Explanation

Question: 28

During a new issue registration, false information is included in the prospectus. Which of the following may be held liable to investors?

I. Officers of the issuer

II. Accountants

III. Syndicate members

IV. People who signed the registration statement

• A. I and III
• B. I and II
• C. I, II, and III
• D. I, II, III, and IV

Correct Answer: D

Explanation:

All of the parties listed may be held liable to the purchasers of the new issue.