In Order to Be Found Guilty for Violation of Rule

question 12

True/False

In order to be found guilty for violation of Rule 10b-5, intentional conduct (scienter) must be proven.

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Definitions:

Domestic Corporations

Corporations that are incorporated and operate within the same country.

Noncontrolling Interest

A shareholder's equity in a corporation that doesn't give the shareholder a controlling interest, representing a share of equity and earnings not owned by the parent company.

Net Income

The total earnings or profit of a company after subtracting all expenses, including taxes, from its revenues.

Domestic Corporations

Companies that are incorporated and operate within the legal boundaries of a country.