On October 8, an investor discovers that a security purchase that took place on August 5 of the same year was prompted by fraudulent information provided by the broker-dealer on the day of the purchase. How long does the investor have to bring action

Question

Business

Austin Hunter

3 February, 09:30

On October 8, an investor discovers that a security purchase that took place on August 5 of the same year was prompted by fraudulent information provided by the broker-dealer on the day of the purchase. How long does the investor have to bring action

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Michaela Shea · Answer 1

three years of the occurrence of the fraud or one year from the discovery of the fraud

Explanation:

The Securities Exchange Act of 1934 established a statute of limitations on fraudulent practices of three years. The three years start to count from the moment that the fraud occurred or one year from the discovery of the fraud, whichever comes first.