The purpose of an issuer of the securities was to provide full and fair disclosure of the financial statements. The investor is the person who deals in the securities issued by the issuer. If the investor suffered a loss due to misstatements of financial statements, then investor has to prove that the investment in securities based on misstated financial statements. To choose: The option that purchaser has to prove about his reliance on the audited financial statements.

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Chapter 20, Problem 20.22MCQ

To determine

Concept Introduction:

The purpose of an issuer of the securities was to provide full and fair disclosure of the financial statements. The investor is the person who deals in the securities issued by the issuer. If the investor suffered a loss due to misstatements of financial statements, then investor has to prove that the investment in securities based on misstated financial statements.

To choose: The option that purchaser has to prove about his reliance on the audited financial statements.

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