One Element of Fraud or Intentional Misrepresentation Is Scienter

question 193

Multiple Choice

One element of fraud or intentional misrepresentation is scienter. That means:

• A) false information about an important fact was passed on
• B) the defendant knew there was false information being passed on
• C) the defendant wanted the plaintiff to believe the falsehood
• D) there was a relationship between the parties that created a legal obligation
• E) the extent of damages caused

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Definitions:

Efficient Capital Market

A market where all relevant information is fully and immediately reflected in securities prices, ensuring that securities are always fairly priced.

Security Prices

The market value or price at which securities, such as stocks or bonds, are bought and sold.

Available Information

Data or facts that are accessible to the public and can be used to make educated decisions or analyses.

Standard Deviation

A statistical measurement that illustrates the dispersion of a dataset relative to its mean, often used to gauge volatility.