Rule 10b-5 under Section 10(b)of the Securities Exchange Act of 1934 imposes liability on an accountant for violation of certain duties. Which of the following is an investor not required to prove to recover from a CPA?

Question

Quizplus · Accepted Answer

To recover from a CPA under Rule 10b-5, an investor must prove a material, factual misrepresentation or omission (A), reliance on the financial statements (B), and damages suffered as a result of this reliance (C). The requirement that the security price was artificially inflated as a result of the materially misstated financial statements (D) is not a necessary element to establish liability under Rule 10b-5.

Rule 10b-5 Under Section 10(b)of the Securities Exchange Act of 1934