Omissions as a Separate Antifraud Violation
Chapters in this video
- 0:00 Riley the Rep and the double-threat trap
- 1:01 Content standard violation plus antifraud liability
- 1:57 Securities Act antifraud provision: offer or sale
- 2:59 Securities Exchange Act parallel coverage
- 3:31 Intent to defraud is not required
- 4:23 The purchaser and fraud-on-the-purchaser clause
- 5:27 Rapid-fire exam checklist
What this video covers
- Why one material omission produces two separate exposures: a fair-and-balanced content standard violation plus independent antifraud liability
- The exact statutory text of the Securities Act's antifraud provision and its focus on conduct in the offer or sale of a security
- How the Securities Exchange Act's general antifraud rule runs parallel to cover conduct in connection with the purchase or sale of any security
- Why intent to defraud is not required for a content standard violation, and how exam writers use sympathetic facts to bait you on this point
- Who the Securities Act's antifraud provision protects: the purchaser, through the fraud-on-the-purchaser clause
- How to match a defrauded buyer on exam day to the correct statute and clause
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 82 course also includes adaptive practice questions and spaced-repetition flashcards, available in Free Beta.