Anne operated a clothing store called Anne's Rags, Inc. She owned all of the stock in the company. After several years in the clothing business, Anne sold her stock to Louise, who personally managed the business. Is the sale governed by the antifraud provisions of federal securities law? Why? Is Louise somehow protected? If so, how? If not, should she be?

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The sale of stock in a company may be subject to federal securities laws including antifraud provisi... View the full answer