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

question 40

True/False

The key to liability under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 is whether undisclosed inside information is material.

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Definitions:

Capitalism

An economic system based on private ownership of the means of production and their operation for profit, characterized by competitive markets, wage labor, and capital accumulation.

Constitutional Freedoms

The rights and liberties guaranteed to all citizens by a country's constitution, such as freedom of speech, religion, and assembly.

Dissent

The act of expressing or holding opinions that are at variance with those previously, commonly, or officially held.

Alliance System

A system of agreements and treaties between countries that provides mutual defense and support in case of a conflict, often considered a cause of World War I.