SEC Rule 10b-5 Holds It Illegal for Anyone Involved in Securities

question 262

Multiple Choice

SEC Rule 10b-5 holds it illegal for anyone involved in securities dealings to:

• A) employ any device, scheme, or artifice to defraud
• B) make any untrue statement of a material fact or to omit to state a material fact
• C) engage in any sale of property that would impose deceit upon any person
• D) employ any device, scheme, or artifice to defraud or make any untrue statement of a material fact or to omit to state a material fact
• E) employ any device, scheme, or artifice to defraud or make any untrue statement of a material fact or to omit to state a material fact or engage in any sale of property that would impose deceit upon any person

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Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony in the group results in an irrational or dysfunctional decision-making outcome.

Poor Decisions

Choices or judgments that result in undesirable outcomes, often due to a lack of information, consideration, or impulse control.

Consensus

This term means general agreement among a group or the shared conclusions of a collective.

Stereotype

A generalized (sometimes accurate but often overgeneralized) belief about a group of people.