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NEW QUESTION: 1
Ms. Scatty is a registered representative with a well-known family of mutual funds. When selling one of
the funds, she forgets to give her buyer a prospectus. Which of the following statements is true?
A. Both A and B are true statements.
B. Since mutual funds are not covered under the Securities Act of 1933, there is no liability in this
C. Ms. Scatty can be held criminally liable under the Securities Act of 1933.
D. Ms. Scatty can be held civilly liable under the Securities Act of 1933.
If Ms. Scatty forgets to give her buyer a prospectus when selling one of the funds, she can
be held civilly liable under the Securities Act of 1933. Unless there was an intent to defraud, she is not
subject to criminal penalties. The purchase and sale of mutual fund shares fall under the Securities Act of