For criminal sanctions to be imposed under Section 10(b)of the Securities Exchange Act of 1934 and SEC Rule 10b-5 scienter must exist.

Question

Quizplus · Accepted Answer

Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 require the presence of scienter, which means the intent to deceive, manipulate, or defraud, for criminal sanctions to be imposed. Therefore, the statement "for criminal sanctions to be imposed under Section 10(b)of the Securities Exchange Act of 1934 and SEC Rule 10b-5 scienter must exist" is true.

For Criminal Sanctions to Be Imposed Under Section 10(b)of the Securities