Which of the Following Was the Result in SEC V

question 18

Multiple Choice

Which of the following was the result in SEC v.Texas Gulf Sulphur Co.,the case in the text involving whether a press release giving a misleading impression about the results of a drilling operation violated Rule 10b-5?

• A) That the company acted only in response to rumors and had no obligation to set forth additional facts regarding the drilling operation, thereby negating any basis for Rule 10b-5 liability.
• B) That the company violated Rule 10b-5 by issuing the misleading press release.
• C) That a press release standing alone may not violate Rule 10b-5 and that the company could not be held liable because it made no actionable statements outside the press release.
• D) That the company could be held liable under Rule 10b-5 but only because it issued other statements in addition to the press release.

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Definitions:

Financial Planning

The process of developing strategies to manage finances, including income, expenses, savings, and investments, to achieve financial goals.

Supply Chain Network Design

Planning and structuring a supply chain's logistics and distribution strategy to maximize efficiency and productivity.

Offshoring

The business practice of relocating manufacturing processes or services to another country to reduce costs.

Working Capital

Refers to a company's current assets minus its current liabilities, indicating the liquid capital available for day-to-day operations.