Under the securities law, a investment in which the investor does not participate in management.
Responsibility of one who is bound in law and justice to do something which may be enforced.
Securities Act of 1933
Recognized several defenses that may be used to avoid civil liability.
The statute of limitations
Section 10 (b)-5
Declare that it is unlawful to use the mails or any instrumentality of interstate commerce or any national securities exchange to defraud any person in connection with the purchase or sale of any security.
A person who
-Owns more than 10 percent of any security
-Is a director or an officer of the issuer of the security.
A person who learns of nonpublic information from an insider.