Ordinary negligence of an accountant will result in liability under Rule 10b-5 of the Securities Exchange Act of 1934.

Name: Ordinary negligence of an accountant will result in liability under Rule 10b-5 of the Securities Exchange Act of 1934.
Brand: Quizplus
Rating: 4.9 (58 reviews)

Question

Quizplus · Accepted Answer

Ordinary negligence of an accountant does not result in liability under Rule 10b-5 of the Securities Exchange Act of 1934. To be held liable under this rule, the accountant must have acted with scienter (i.e., intent to deceive, manipulate, or defraud).

Ordinary Negligence of an Accountant Will Result in Liability Under