An investor discovers a material misrepresentation in a prospectus and wishes to seek a legal remedy. Which of the following statements is true regarding their statutory rights?

Question

Accepted Answer

This is correct. Investors must choose one or the other. If they choose rescission, they return the shares for a refund. If they choose damages, they keep the shares but sue for the loss in value.

An investor discovers a material misrepresentation in a prospectus and wishes to seek a legal remedy. Which of the following statements is true regarding their statutory rights?

Discussion