The Key to Liability Under Section 10(b)of the Securities Exchange

question 72

True/False

The key to liability under Section 10(b)of the Securities Exchange Act of 1934 and SEC Rule 10b-5 is whether information omitted or misrepresented in connection with the purchase or sale of a security is material .

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Definitions:

Accountable

Being responsible or answerable for actions or decisions, implying a willingness to accept and report on the outcomes of one's actions or decisions.

Dispensable

Capable of being dispensed with; not essential or necessary.

Social Loafing

When part of a team, individuals often show a decrease in effort towards goal completion as opposed to their solo endeavors.

Individual Productivity

The amount of output or work a single person can produce in a given timeframe.