If a Manager of an Unprofitable Business Induces Shareholders to Sell

question 11

True/False

If a manager of an unprofitable business induces shareholders to sell their stock to him by representing that the business will fail, although he knows that the business has become potentially profitable, he violates Rule 10b-5.

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Definitions:

Online Auction Site

A website where goods or services are sold to the highest bidder through an auction process.

Online Store

A website or application where goods and services can be bought over the Internet using a web browser or mobile app.

Social Commerce

Social commerce is a subset of e-commerce that involves social media and user contributions to assist in online buying and selling of products and services.

B2C

Business-to-Consumer, a business model where products or services are sold directly from businesses to the end-consumers.