Carter decided to purchase stock in a new start-up company called DanceBalls, In

Question

Carter decided to purchase stock in a new start-up company called DanceBalls, Inc. Carter carefully reviewed the prospectus before making the purchase. Although all of the information in the prospectus was accurate, DanceBalls failed to generate the profits Carter had expected. Under which of the following securities statutes can Carter bring an action against DanceBalls? A. The Securities Exchange Act of 1933 ??. The Securities Exchange Act of 1934 C. Sarbanes-Oxley Act of 2002 D. None of the above

Explanation / Answer

Ans:- D) None of the above

Reason:- Since there was not mistake in the prospectus. Non of the fact were false , nor the facts were supressed. There seems no unlawful works in the parts of DancerBalls., hence no action can be taken by carter. Carter has made an investment , there is the risk associated with the investment, so due to that risk there was the fluctuations in proffits.

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