Which of the Following Prohibits the Use of Manipulative Devices

question 59

Multiple Choice

Which of the following prohibits the use of manipulative devices to bypass SEC rules?

• A) Section 15(a)
• B) Section 10(b)
• C) Section 5
• D) Rule 2
• E) Rule 2(5)

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Definitions:

Debits

These represent transactions that increase assets or expenses or decrease liabilities, equity, or revenue in a company's accounts.

Credits

Entries that decrease assets or increase liabilities and equity on a company's balance sheet, reflecting the accounting principle of double-entry bookkeeping.

Ending Owner's Equity

Ending Owner's Equity represents the final amount of owner's equity in a business at the conclusion of an accounting period, after accounting for all additions and deductions.

Withdrawals

Withdrawals typically refer to amounts of money taken out from a bank account, but in business, it can also mean money taken out by the owner for personal use, reducing the capital account.