Practice question
A security sale qualifies for exemption from section 8.1 registration. The seller knowingly uses fraudulent statements to induce purchase and claims the exemption authorizes fraud. Which is correct?
- Registration exemption eliminates every fraud prohibition
- The exemption concerns registration; it does not authorize securities fraud under section 26
- Every exempt sale is necessarily truthful
- Only registered securities can ever be sold deceptively
- The seller may choose which laws exist
Legal references
- https://lawphil.net/statutes/repacts/ra2000/ra_8799_2000.html — RA 8799, sections 8–10 and 26
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