The SEC Rule 10b-5 deals with
A) fraud in the purchase or sale of securities.
B) penalties for willfully and knowingly violating the Securities Exchange Act of 1934.
C) the use of the "due diligence" defense to avoid liability.
D) integrated disclosure system for annual reports.

Question

Quizplus · Accepted Answer

SEC Rule 10b-5 prohibits fraud in the purchase or sale of securities, including misrepresentations and omissions of material information. It is a key provision of the Securities Exchange Act of 1934 and is used to hold parties accountable for fraudulent behavior in the securities industry.

The SEC Rule 10b-5 Deals with