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← Series 63: Remedies & Administrative Provisions
Series 63 practice questionmediumDamages Calculation — Security Retained

A buyer still owns a security purchased in a transaction covered by USA Section 410(a). What is the statutory buyer remedy?

  1. ATender the security and recover the consideration paid plus statutory interest and allowable costs and attorney's fees, less income received✓ Correct answer
  2. BKeep the security and automatically recover the full purchase price
  3. CRecover double statutory interest without tender
  4. DRecover only the market decline as of the filing date
Explanation

Why A — Tender the security and recover the consideration paid plus statutory interest and allowable costs and attorney's fees, less income received

When the buyer still owns the security, Section 410(a) provides rescission upon tender: consideration paid plus statutory interest, costs, and reasonable attorney's fees, less income received. The damages formula for a security already disposed of is different.

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