Cath is an accountant with Discount Corporation. Efrem buys Discount stock and loses money on the investment. To recover from Cath under Section 10(b)of the Securities Exchange Act of 1934 and SEC Rule 10b-5, Efrem must prove

Question

Quizplus · Accepted Answer

To recover under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, Efrem must prove fraud, reliance, materiality, causation, and scienter. Scienter refers to a defendant's knowledge of the wrongfulness of an act or omission, which is a crucial element in securities fraud cases.

Cath Is an Accountant with Discount Corporation