Private Parties Can Sue Violators of Section 10(b)of the Securities

question 13

True/False

Private parties can sue violators of Section 10(b)of the Securities Exchange Act of 1934 and SEC Rule 10b-5.

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Definitions:

ROE

Return on Equity, a measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Expected Earnings

The forecasted income of a company, often used by investors to gauge the company's future profitability.

Common Shareholders' Equity

The amount of money that would be returned to shareholders if all the company's assets were liquidated and all its debts paid off.

Replacement Cost

The cost to replace an asset with another of similar kind and quality at current prices, without deduction for depreciation.