Series 63 practice questionmediumDamages Calculation — Statutory Interest
A client sues for civil liability over an illegal sale two years after purchase. The client received $200 in dividends but the statutory interest since purchase totals $400. If the purchase price was $10,000, what is the maximum recovery?
- A$10,400
- B$10,200✓ Correct answer
- C$10,600
- D$10,000
Explanation
Why B — $10,200
Under the civil liability remedy, recovery equals the amount paid plus interest, minus any income received on the security. Here, $10,000 + $400 - $200 = $10,200.
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