The Key to Liability Under Section 10(b) of the Securities

question 40

True/False

The key to liability under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 is whether undisclosed inside information is material.

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Definitions:

Primary Sector

The sector of an economy involving the extraction and harvesting of natural resources directly from the earth, such as agriculture, mining, and forestry.

Tertiary Sector

This term refers to the sector of an economy focused on services rather than the production of goods, including areas such as retail, entertainment, and financial services.

Secondary Sector

The part of the economy that includes industries involved in the processing, transformation, fabrication, or construction of materials and products from raw materials.

Rational-Legal

An authority system based on legal rules and regulations, and the rationality of law, often associated with modern bureaucracies.