Rule 10b-5 Under Section 10(b)of the Securities Exchange Act of 1934

question 31

Multiple Choice

Rule 10b-5 under Section 10(b) of the Securities Exchange Act of 1934 imposes liability on an accountant for violation of certain duties. Which of the following is an investor not required to prove to recover from a CPA?

• A)A material, factual misrepresentation or omission.
• B)Reliance by the plaintiff on the financial statements.
• C)Damages suffered as a result of reliance on the financial statements.
• D)The security price was artificially inflated as a result of the materially misstated financial statements.

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Definitions:

Individual Producer

A single entity or person involved in the production of goods or services.

Autonomous Groups

Teams or groups within an organization that operate independently and with the authority to make decisions regarding their projects or tasks.

Enabling Groups

Teams or collections of individuals empowered with the authority or means to initiate change, solve problems, or drive innovation within organizations.

Friendship Groups

Social formations that consist of individuals who choose to interact with each other based on shared interests, values, or experiences.