Series 63 practice questionhardCivil Liabilities — Statute of Limitations Scenario
Marcus purchased securities on March 1, 2022, based on fraudulent statements. He discovered the fraud on June 1, 2024. Under the USA, what is the latest date Marcus can bring a civil action?
- AMarch 1, 2025 (3 years from the sale)✓ Correct answer
- BJune 1, 2026 (2 years from discovery)
- CMarch 1, 2024 (2 years from the sale)
- DJune 1, 2025 (1 year from discovery)
Explanation
Why A — March 1, 2025 (3 years from the sale)
The action is barred at the earlier of three years after the sale or two years after discovery. Three years after the March 1, 2022 sale is March 1, 2025; two years after the June 1, 2024 discovery is June 1, 2026. March 1, 2025 is therefore the deadline.
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