Which of the Following Is True of Rule 10b-5 of the 1934

question 6

Multiple Choice

Which of the following is true of Rule 10b-5 of the 1934 Act?

• A) Securities need not be registered under the 1933 Act or the 1934 Act for Rule 10b-5 to apply.
• B) The rule applies only to transactions executed on a securities exchange.
• C) The rule applies only to face-to-face transactions.
• D) Misstatements or omissions of material fact, scienter, and reliance are not elements of Rule 10b-5.

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Definitions:

Economy

A system through which the production, distribution, and consumption of goods and services are organized and managed in a particular area or country.

Communists

Individuals or parties that advocate for a classless society in which the means of production are owned communally and private property is nonexistent or severely curtailed.

Theory

A system of ideas intended to explain something, based on general principles independent of the thing being explained.

Competitive

The condition of the market in which businesses or sellers independently strive for consumers' patronage to gain a profit.