The "Fraud-On-The-Market-Theory" Used in Some Cases to Establish Liability Under

question 10

Multiple Choice

The "fraud-on-the-market-theory" used in some cases to establish liability under Rule 10b-5 of the Securities Act of 1934 is an indirect way of establishing which of the following elements of proof?

• A)The defendant acted with negligence.
• B)The defendant acted with scienter.
• C)The plaintiff's reliance.
• D)The plaintiff's due diligence.

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Definitions:

Tennis Rackets

Sporting equipment consisting of a handled frame with a open hoop where a network of strings is stretched tightly.

Production Of Socks

The manufacturing process of creating socks, involving various steps from the sourcing of materials to the final product packaging.

Production Possibilities Frontier

A graphical representation showing the maximum combinations of goods and/or services that can be produced with a fixed set of resources.

Opportunity Cost

The lost benefit that could have been enjoyed if the chosen option had not been taken, implying the trade-off of forgoing the next best alternative.