SEC Rule 10b-5

question 5

Multiple Choice

SEC Rule 10b-5:

• A) is the principal antifraud rule relating to the secondary distribution of securities.
• B) 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) 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) all of the above.

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Definitions:

Torts

Civil wrongdoings recognized by law as grounds for a lawsuit, excluding breaches of contract and equitable relief claims, potentially resulting in damages awarded to the injured party.

Scope Of Employment

The range of activities considered part of an employee's job duties and responsibilities for which the employer is legally responsible.

Agent's Conduct

Agent's conduct refers to the actions and behavior of an agent while acting on behalf of a principal, which must align with the principal's instructions and the laws governing the agency relationship.

Employer

An individual or organization that hires and pays people to work.