$29$

Multiple Choice

$2$ points

When bringing suit against auditors under Section $10($b$)$ of the Securities Exchange Act of $1934,$ plaintiffs must allege and prove:

the financial statements in the offering registration filing contained a material misstatement.

auditors were aware of material misstatements in the financial statements.

auditors were guilty of ordinary negligence and failed to discover material misstatements in the financial statements.

the plaintiffs purchased the specific securities through a public offering and thus have a right to sue.