Which of the Following Statements Is True Regarding Rule 10b-5

question 1

Multiple Choice

Which of the following statements is true regarding Rule 10b-5?

• A) Any suit alleging a Rule 10b-5 violation arises in state court.
• B) It is not applicable to those corporations whose shares are traded on the stock market.
• C) It is not applicable to privately held corporations.
• D) Rule 10b-5 requires intent to deceive.

---

Definitions:

Opportunity Cost

The foregone benefit that would have been derived by choosing an alternative option.

Differential Cost

A future cost that differs between any two alternatives.

Variable Cost Per Unit

The cost that varies with each unit produced, not including fixed costs.

Units Sold

The total number of units of a product that have been sold during a particular period.