Someone Who Wrongfully Obtains Inside Information and Trades on It

question 39

True/False

Someone who wrongfully obtains inside information and trades on it for his or her personal gain can be liable under SEC Rule 10b-5.

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Definitions:

Business Combination

A transaction or other event in which an acquirer obtains control of one or more businesses, which can be achieved through acquisitions, mergers, or consolidations.

Consolidate

In financial context, to combine assets, liabilities, and other financial items of two or more entities into one.

Consolidated Balance Sheet

A financial statement that aggregates all assets, liabilities, and equity of a parent company and its subsidiaries, presenting the financial position of the entire group.

Subsidiary

A company that is controlled by another company, referred to as the parent company.