Company BACI provided services to small publicaly traded companies. Company CC sold customized USB drives. Company CC falsely informed BACI that it was awarded a contract of $ 25million by the DOHS. The information was used by BACI to promote the stock of CC and compensation for promotion were paid. The SEC started investigation and the BACI sold its share for $ 7.8 million. The SEC filed a suit agiants BACI for violating SA,1933. To explain: The liability of BACI for a false statement made by CC.

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Chapter 28, Problem 7BCP

Summary Introduction

Case summary: Company BACI provided services to small publicaly traded companies. Company CC sold customized USB drives. Company CC falsely informed BACI that it was awarded a contract of $25million by the DOHS. The information was used by BACI to promote the stock of CC and compensation for promotion were paid. The SEC started investigation and the BACI sold its share for $7.8 million. The SEC filed a suit agiants BACI for violating SA,1933.

To explain: The liability of BACI for a false statement made by CC.

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Question

Chapter 28, Problem 7BCP

Summary Introduction

Case summary: Company BACI provided services to small publicaly traded companies. Company CC sold customized USB drives. Company CC falsely informed BACI that it was awarded a contract of $25million by the DOHS. The information was used by BACI to promote the stock of CC and compensation for promotion were paid. The SEC started investigation and the BACI sold its share for $7.8 million. The SEC filed a suit agiants BACI for violating SA,1933.

To explain: The liability of BACI for a false statement made by CC.

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Answer 3

Question

Chapter 28, Problem 7BCP

Summary Introduction

Case summary: Company BACI provided services to small publicaly traded companies. Company CC sold customized USB drives. Company CC falsely informed BACI that it was awarded a contract of $25million by the DOHS. The information was used by BACI to promote the stock of CC and compensation for promotion were paid. The SEC started investigation and the BACI sold its share for $7.8 million. The SEC filed a suit agiants BACI for violating SA,1933.

To explain: The liability of BACI for a false statement made by CC.

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Answer 4

Question

Chapter 28, Problem 7BCP

Summary Introduction

Case summary: Company BACI provided services to small publicaly traded companies. Company CC sold customized USB drives. Company CC falsely informed BACI that it was awarded a contract of $25million by the DOHS. The information was used by BACI to promote the stock of CC and compensation for promotion were paid. The SEC started investigation and the BACI sold its share for $7.8 million. The SEC filed a suit agiants BACI for violating SA,1933.

To explain: The liability of BACI for a false statement made by CC.

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Answer 5

Chapter 28, Problem 7BCP

Summary Introduction

Case summary: Company BACI provided services to small publicaly traded companies. Company CC sold customized USB drives. Company CC falsely informed BACI that it was awarded a contract of $25million by the DOHS. The information was used by BACI to promote the stock of CC and compensation for promotion were paid. The SEC started investigation and the BACI sold its share for $7.8 million. The SEC filed a suit agiants BACI for violating SA,1933.

To explain: The liability of BACI for a false statement made by CC.

Answer 6

Chapter 28, Problem 7BCP

Summary Introduction

Case summary: Company BACI provided services to small publicaly traded companies. Company CC sold customized USB drives. Company CC falsely informed BACI that it was awarded a contract of $25million by the DOHS. The information was used by BACI to promote the stock of CC and compensation for promotion were paid. The SEC started investigation and the BACI sold its share for $7.8 million. The SEC filed a suit agiants BACI for violating SA,1933.

To explain: The liability of BACI for a false statement made by CC.

Answer 7

Chapter 28, Problem 7BCP

Summary Introduction

Case summary: Company BACI provided services to small publicaly traded companies. Company CC sold customized USB drives. Company CC falsely informed BACI that it was awarded a contract of $25million by the DOHS. The information was used by BACI to promote the stock of CC and compensation for promotion were paid. The SEC started investigation and the BACI sold its share for $7.8 million. The SEC filed a suit agiants BACI for violating SA,1933.

To explain: The liability of BACI for a false statement made by CC.

Answer 8

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Answer 11

Ch. 28 - Prob. 1RE Ch. 28 - Prob. 2RE Ch. 28 - Prob. 3RE Ch. 28 - Prob. 4RE Ch. 28 - Prob. 1IS Ch. 28 - Prob. 2IS Ch. 28 - Prob. 1BS Ch. 28 - Prob. 2BS Ch. 28 - Prob. 3BS Ch. 28 - Prob. 4BCP

Solution Summary: The author explains that a company can be held liable under the Securities Act even for the false statement made by someone else.

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Chapter 28 Solutions