Which of the Following Is an Accurate Statement Regarding Rule

question 66

Multiple Choice

Which of the following is an accurate statement regarding Rule 10b-5 of the Securities Exchange Act of 1934?

• A) The Supreme Court has ruled that liability under Rule 10b-5 does not extend to aiders or abettors who participated in financial statement misstatements that were not the primary defendants.
• B) Federal court decisions have clarified that Rule 10b-5 applies only to direct sellers.
• C) Hochfelder and subsequent court decisions have increased the liability of auditors under Rule 10b-5.
• D) According to most recent court decisions, poor judgment is proof of fraud.

---

Definitions:

Abnormal Behavior

Patterns of emotion, thought, or action deemed pathological for cultural, societal, or situational contexts, often causing distress or dysfunction.

Antisocial Personality Disorder

A mental health disorder characterized by a long-term pattern of manipulating, exploiting, or violating the rights of others.

Attention Deficit Disorder

A neurodevelopmental disorder characterized by problems with focus, impulsivity, and, in some cases, hyperactivity.

Somatoform Disorders

A group of disorders where individuals experience physical symptoms without a medical cause, often linked to psychological factors.