Which of the Following Is True Regarding Remedies Available Under

question 57

Multiple Choice

Which of the following is true regarding remedies available under Rule 10b-5?

• A) The measure of damages is typically out-of-pocket loss, or an investor may elect to rescind the transaction; and the court may award prejudgment interest; but punitive damages are unavailable.
• B) The measure of damages is typically out-of-pocket loss with no right on the part of an investor to elect to rescind the transaction, and the court may award prejudgment interest; but punitive damages are unavailable.
• C) The measure of damages is typically out-of-pocket loss, or an investor may elect to rescind the transaction; the court may award prejudgment interest; and punitive damages are available in appropriate cases.
• D) The measure of damages is typically out-of-pocket loss with no right on the part of an investor to elect to rescind the transaction, the court may award prejudgment interest, and punitive damages are available in appropriate cases.

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Definitions:

Utility-Maximizing

A principle in economics where consumers aim to achieve the highest level of satisfaction with their choices, subject to their income and the prices of goods and services.

Marginal Utility

Marginal Utility represents the additional satisfaction or utility a consumer gains from consuming one more unit of a good or service.

Diminishing Marginal Utility

A principle stating that as a person increases consumption of a product, there is a decline in the satisfaction or utility they derive from each additional unit.

Utility Maximization

The economic principle that individuals seek to obtain the greatest possible satisfaction from their consumption choices, given their income and prices.