Series 63 practice questionhardCivil Liability and Damages
An agent sells a security in violation of the USA. The buyer sues and seeks damages but has already received income from the security. How does Section 410 adjust the amount the buyer can recover?
- AThe recovery is reduced by any income received from the security✓ Correct answer
- BThe buyer receives the purchase price plus interest without adjustment
- CThe buyer receives only the interest on the purchase price
- DThe buyer loses the right to any damages if income was received
Explanation
Why A — The recovery is reduced by any income received from the security
Section 410 specifies that any recovery is reduced by income received, such as dividends or interest. The buyer is still entitled to damages but must subtract amounts already gained from the security.
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