Question
Section 10(b) of the Exchange Act is the statute's anti-fraud provision. Pursuant to10(b) of the Exchange Act, the SEC adopted Rule 10b-5. As to Rule
Section 10(b) of the Exchange Act is the statute's anti-fraud provision. Pursuant to10(b) of the Exchange Act, the SEC adopted Rule 10b-5. As to Rule 10b-5 which of the following statements are true. Select all that apply.
A.Rule 10b-5 prohibits the use of any "device, scheme, or artifice to defraud," and creates liability for any misstatement or omission of a material fact, or one that investors would think was important to their decision to buy or sell the stock.
B.AlthoughRule 10b-5 prohibits any misstatement or omission of a material fact, the rule prescribes penalties that may be assessed by the SEC but does not create private cause of action for investors.
C.In interpreting Rule 10b-5, courts held early on that investors can sue under the rule.
D.Only issuers and their employees may be liable under Rule 10b-5.
E.Under Rule 10b-5, awide range of participants, from brokers to issuers to company employees may be liable, provided that the fraud was "in connection with" a securities purchase or sale.
Please provide all of the parts that apply
Thank you
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