Rule 10b-5 Under Section 10(b)of the Securities Exchange Act of 1934

question 31

Multiple Choice

Rule 10b-5 under Section 10(b) of the Securities Exchange Act of 1934 imposes liability on an accountant for violation of certain duties. Which of the following is an investor not required to prove to recover from a CPA?

• A)A material, factual misrepresentation or omission.
• B)Reliance by the plaintiff on the financial statements.
• C)Damages suffered as a result of reliance on the financial statements.
• D)The security price was artificially inflated as a result of the materially misstated financial statements.

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Definitions:

Ascomycota

Ascomycota, also known as sac fungi, is a division of fungi that store their spores in a sac-like structure called an ascus.

Basidiomycota

A phylum of fungi characterized by producing spores on basidia, often found as mushrooms, toadstools, smuts, rusts, and puffballs.

Black Bread Mold

A common type of fungus that grows on bread and other food items, causing spoilage.

Ascomycota

A phylum of fungi characterized by the formation of spores in a sac-like structure called an ascus.