Series 79 practice questioneasyDue Diligence Defense
Who is responsible for conducting a reasonable investigation for the due diligence defense in a registered securities offering?
- AEach underwriter participating in the offering✓ Correct answer
- BOnly the lead underwriter
- CThe issuer's legal counsel
- DThe SEC staff
Explanation
Why A — Each underwriter participating in the offering
Each underwriter must independently conduct reasonable investigation to rely on the due diligence defense. Responsibility does not fall solely on the lead underwriter or legal counsel. The SEC staff is not responsible for due diligence.
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