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:

Communications Capabilities

The range of methods and techniques a company can use to effectively convey messages to its target audience.

Transportation

The movement of goods, services, and people from one location to another, playing a crucial role in the supply chain and logistics.

Infrastructure

The basic facilities, services, and installations needed for a community or society to function, such as transportation and communications systems, water and power lines, and public institutions like schools, post offices, and prisons.

Quota

Designates the maximum quantity of a product that may be brought into a country during a specified time period.