Longhaul, Inc., files a suit against Midge, an accountant, under the antifraud provisions of the Securities Exchange Act of 1934 and Rule 10b-5 of the Securities and Exchange Commission. To succeed, Longhaul must show that Midge

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To succeed in a suit under the antifraud provisions of the Securities Exchange Act of 1934 and Rule 10b-5 of the Securities and Exchange Commission, the plaintiff must show that the defendant acted with scienter, meaning they had a knowledge of wrongdoing or intent to deceive. The other choices of buying or selling a security, being incompetent, or knowing nothing about securities are not relevant to this particular requirement for success in this type of suit.