The SEC Rule 10b-5 Deals with

question 10

Multiple Choice

The SEC Rule 10b-5 deals with

• A)Fraud in the purchase or sale of securities.
• B)Penalties for willfully and knowingly violating the Securities Exchange Act of 1934.
• C)The use of the "due diligence" defense to avoid liability.
• D)Integrated disclosure system for annual reports.

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Definitions:

Present Value

It measures the current value of a future amount of money or stream of cash flows, using a specific discount rate to account for the time value of money.

Projected Future Cash Flows

An estimation of the amount of money expected to be received and paid out by a business over an upcoming period.

Fundamental Analysis

An approach to evaluating a security that involves analyzing financial statements, health of the economy, industry conditions, and other factors to determine a security's intrinsic value.

Intrinsic Value

The perceived or calculated true value of an asset, investment, or a company, based on fundamentals, irrespective of market value.