Which of the Following Is True of Rule 10b-5

question 24

Multiple Choice

Which of the following is true of Rule 10b-5?

• A) Privity of contract is a necessity for bringing a lawsuit under this rule.
• B) Civil private lawsuits are not permitted under this rule.
• C) Only purchasers and sellers of securities can sue under this rule.
• D) Ordinary negligence is a violation of this rule.

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Definitions:

Statutory Provisions

Specific clauses or sections within a statute (law) enacted by a legislative body, governing various legal matters or actions.

Liability

The state of being responsible for something, especially by law, including debts or legal obligations.

Unlimited Liability

A legal obligation in business where owners are personally responsible for all debts incurred by the business.

Misappropriation

The unauthorized, improper, or unlawful use of funds or assets for purposes other than those for which they were intended.