In Order to Be Found Guilty for Violation of Rule

question 12

True/False

In order to be found guilty for violation of Rule 10b-5, intentional conduct (scienter) must be proven.

---

Definitions:

Operating Assets

Assets used by a company in its day-to-day operations to generate revenue, excluding investments and non-operational assets.

Combined Margin

A financial metric that combines various profit margins (e.g., gross, operating, net) to give a comprehensive overview of a company's profitability.

Net Operating Income

The total profit of a company after operating expenses are subtracted from total revenue, but before deducting taxes and interest.

Margin

The difference between the sales price of a product and its cost of production, often expressed as a percentage of the sales price.