In a Rule 10b-5 Case, _____

question 1

Multiple Choice

In a Rule 10b-5 case, _____.

• A) selective disclosure by a defendant doesn't make him liable for omission of material facts
• B) the plaintiff must prove that the defendant acted with the intent to deceive, manipulate, or defraud
• C) negligence on the part of the defendant is enough to make the defendant liable
• D) the plaintiff is generally not required to prove that she relied on the defendant's false statement

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Definitions:

Liabilities

The financial obligations or debts of a business entity, which are settled over time through the transfer of economic benefits including money, goods, or services.

Assets

Resources owned or controlled by a business, individual, or entity that are expected to provide future economic benefits.

Accounting Equation

A fundamental financial principle representing the balance between a company's assets, liabilities, and equity.

Office Furniture

Tangible items such as desks, chairs, and filing cabinets that are used in an office environment.