Which of the Following Statements Is True of Rule 10b-5

question 35

Multiple Choice

Which of the following statements is true of Rule 10b-5?

• A) Privity of contract is a necessity for bringing a lawsuit under this rule.
• B) Civil private lawsuits are not permitted under this rule.
• C) Only purchasers and sellers of securities can sue accountants under this rule.
• D) Ordinary negligence imposes liability on the accountant under this rule.

---

Definitions:

Reconcile

The act of making one account consistent with another, typically by explaining differences and adjusting financial records as necessary.

Unwritten

Pertaining to norms, rules, or agreements that are understood and followed but not formally documented.

Behavior

The actions, reactions, or conduct of an individual or group in response to external or internal stimuli.

Informal

Characterized by a casual or unofficial form, manner, or nature, often contrasting with formal structures or protocols.