To Avoid Sanctions Under Section 10(b)of the Securities Exchange Act

question 26

True/False

To avoid sanctions under Section 10(b)of the Securities Exchange Act of 1934 and SEC Rule 10b-5, scienter must exist.

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Definitions:

Rate Of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.

Discontinued Operations

Components of a business that have been disposed of or are being held for sale, separate from continuing operations.

Transitory Component

Temporary fluctuations in financial or economic data that do not reflect long-term trends and are expected to revert over time.

Permanent Earnings Component

The part of a company's net income expected to continue in the future, excluding any extraordinary or one-time events.