(a)
Case summary:Person ML told person M and PK regarding a trading program that will help in purchase and sell securities. ML informed that the securities were insured as well as controlled and monitored by the Federal Reserve. Person M and PK without confirming the existence of program start to sell interest in the program to investors. The investors were assured an extraordinary
To explain: The requirement to establish the violation of SEC rules.
(b)
Case summary:Person ML told person M and PK regarding a trading program that will help in purchase and sell securities. ML informed that the securities were insured as well as controlled and monitored by the Federal Reserve. Person M and PK without confirming the existence of program start to sell interest in the program to investors. The investors were assured an extraordinary rate of return from 10 percent to 100 percent for the investment of
To explain:The responsibility of investors for the loss.
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The Legal Environment of Business: Text and Cases (MindTap Course List)
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