Which of the Following Represents the General Rule Under Rule

question 8

Multiple Choice

Which of the following represents the general rule under rule 10b-5 in regard to the duty of a company to reveal corporate developments?

• A) A company has no general duty under Rule 10b-5 to reveal corporate developments unless the company or its insiders (1) trade in securities or (2) recommend trading to someone else.
• B) A company has no general duty under Rule 10b-5 to reveal corporate developments unless the company or its insiders (1) trade in securities, (2) recommend trading to someone else, or (3) disclose the information as a tip while withholding it from the general public.
• C) A company has a general duty under Rule 10b-5 to reveal corporate developments that are material.
• D) A company had a general duty under Rule 10b-5 to reveal corporate developments if it appears (1) that developments are material and (2) that the material developments will have a negative effect on the company's financial reports.

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Definitions:

End-Stage Death

A term often used to describe the final phase of a disease where death is inevitable and imminent.

Palliative Care

A specialized area of healthcare that focuses on relieving and preventing the suffering of patients in advanced illness stages.

Emotional Denial

A psychological defense mechanism where an individual refuses to accept reality or facts, thereby blocking external events from awareness.

Prognosis Of Death

An estimation of the likelihood of death, often given in the context of terminal illness or severe injury.