The Rule That Prohibits Schemes and Devices to Defraud Investors

question 66

Multiple Choice

The rule that prohibits schemes and devices to defraud investors is Rule:

• A) 504.
• B) 14a-3.
• C) 10b-5.
• D) 16(b).

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Definitions:

Contract

A legally binding agreement between two or more parties that creates mutual obligations enforceable by law.

Remedies

Legal means used to enforce a right or redress a harm, including monetary damages and injunctions.

Misrepresented

Incorrectly or falsely presented information, often leading to a misunderstanding or an erroneous basis for a contract or agreement.

Equitable Remedy

A court-ordered action aimed at achieving fairness, such as injunctions or specific performance, rather than monetary compensation.