Bertha is an accountant with Consumer Sales Corporation. Doral buys Consumer stock and loses money on the investment. To recover from Bertha under Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 of the Se?curities and Exchange Commission, Doral must prove

Question

Quizplus · Accepted Answer

To recover under Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 of the Securities and Exchange Commission, Doral must prove scienter (intent to deceive), fraud (misrepresentation or omission of material fact), reliance (on the misrepresentation or omission), materiality (the misrepresentation or omission was important in the decision to invest), and causation (the misrepresentation or omission caused the investment loss).

Bertha Is an Accountant with Consumer Sales Corporation