Rule 10b-5 Applies To

question 54

Multiple Choice

Rule 10b-5 applies to:

• A) any purchase or sale of any security.
• B) only the purchase or sale of securities registered under the 1934 Act.
• C) only publicly traded securities.
• D) only securities that are involved in a secondary distribution.

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Definitions:

Treasury Bills

Short-term government securities issued at a discount from the face value and maturing at par, used as a tool for managing liquidity and financing government debt.

Common Stocks

Type of equity security that represents ownership in a corporation, offering voting rights and potential dividends.

Efficient Markets Hypothesis

A theory that suggests that financial markets are “informationally efficient,” meaning that asset prices always reflect all available information.

Actual Capital Markets

Real-world financial markets where savings and investments are transferred between suppliers who have capital and those who are in need of capital.