Which of the Following Is True of Rule 10b-5 of the 1934

question 6

Multiple Choice

Which of the following is true of Rule 10b-5 of the 1934 Act?

• A) Securities need not be registered under the 1933 Act or the 1934 Act for Rule 10b-5 to apply.
• B) The rule applies only to transactions executed on a securities exchange.
• C) The rule applies only to face-to-face transactions.
• D) Misstatements or omissions of material fact, scienter, and reliance are not elements of Rule 10b-5.

---

Definitions:

Ethical Challenge

Situations where one must make a decision that involves conflicting moral principles or values.

Loyalty

The quality of being faithful in commitment to one's obligations, an organization, or individuals, often resulting in mutual respect and trust.

Conceal Information

The act of deliberately hiding or withholding information from those who have the right or need to know it.

Corporate Culture

The shared values, beliefs, behaviors, and practices that characterize a company or organization.