Asked by Casey Snyder on Jul 05, 2024
Verified
________ of the Securities Exchange Act of 1934 prohibits fraud associated with the purchase or sale of all securities.
A) Section 2a-6
B) Section 15(b)
C) Rule 10b-5
D) Rule 5(c) (2)
E) Rule 2(c) (5)
Rule 10b-5
A rule under the U.S. Securities Exchange Act of 1934 addressing fraud and misrepresentation in securities transactions.
Fraud
An intentional deception that causes harm to another.
- Clarify the idea of insider trading along with the legal penalties it incurs.
Verified Answer
MA
Maria AlejandraJul 10, 2024
Final Answer :
C
Explanation :
One of the most important sections of the Securities Exchange Act of 1934 is Section 10(b),which prohibits the use of manipulative and deceptive devices to bypass Securities and Exchange Commission (SEC)rules.Within this section,subsection 5 prohibits fraud associated with the purchase or sale of all securities.Even though securities may be exempt from registration,they are still subject to Rule 10b-5.
Learning Objectives
- Clarify the idea of insider trading along with the legal penalties it incurs.
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