
Which of the following represents the general rule under rule 10b-5 in regard to the duty of a company to reveal corporate developments?
A) A company has no general duty under Rule 10b-5 to reveal corporate developments unless the company or its insiders (1) trade in securities or (2) recommend trading to someone else.
B) A company has no general duty under Rule 10b-5 to reveal corporate developments unless the company or its insiders (1) trade in securities, (2) recommend trading to someone else, or (3) disclose the information as a tip while withholding it from the general public.
C) A company has a general duty under Rule 10b-5 to reveal corporate developments that are material.
D) A company had a general duty under Rule 10b-5 to reveal corporate developments if it appears (1) that developments are material and (2) that the material developments will have a negative effect on the company's financial reports.
Correct Answer:
Verified
Q25: In order to be actionable under Rule
Q35: A controlling shareholder is traditionally considered an
Q36: Under what circumstances will reliance be presumed
Q37: A right of action under section 10(b)may
Q39: A person may be liable under Section
Q41: If a purchase or sale by an
Q43: Which of the following is true regarding
Q44: Which of the following is true regarding
Q45: In theUnited States v.O'Hagan case referenced in
Q60: Which of the following is NOT a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents