The ________ Imposes Liability Under Section 10(b) and Rule 10b-5

question 10

Multiple Choice

The ________ imposes liability under Section 10(b) and Rule 10b-5 on an outsider who misappropriates information about a company, in violation of his or her fiduciary duty, and then trades in the securities of that company.

• A) Insider Trading Sanctions Act
• B) Sarbanes-Oxley Act
• C) tort of appropriation
• D) misappropriation theory

---

Definitions:

Profit and Loss Statement

A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period of time, usually a fiscal quarter or year.

Common Fixed Costs

Costs that do not vary with the level of output or sales, shared among products or departments.

Investment Evaluation

The process of determining the potential returns of an investment opportunity, considering risks, costs, and benefits to make informed financial decisions.

Responsibility Centres

Divisions or departments within an organization, each managed by a supervisor who is responsible for its performance and costs.