All of the Following Are True Regarding SEC Rule 10b-5

question 31

Multiple Choice

All of the following are true regarding SEC Rule 10b-5 except: ______.

• A) 10b-5 is the principal antifraud rule relating to the secondary distribution of securities.
• B) 10b-5 provides that a civil action for damages may be brought by any private investor who purchased or sold a security and was injured because of false, misleading, or undisclosed information.
• C) 10b-5 applies to all securities, whether registered or not, as long as use is made of the mail, interstate commerce, or a national stock exchange.
• D) 10b-5 does not require a plaintiff to show reliance on the misrepresentations.

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Definitions:

Eclectic

Combining ideas, styles, or techniques from a diverse range of sources.

Electroconvulsive Shock Therapy (ECT)

A medical treatment most commonly used for severe depression, involving the induction of a controlled seizure in the patient through electrical currents transmitted to the brain.

Schizophrenia

A chronic mental health disorder characterized by disruptions in thought processes, perceptions, emotional responsiveness, and social interactions.

Epilepsy

A neurological disorder characterized by recurrent, unprovoked seizures caused by abnormal brain activity.