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Which of the Following Is True of Rule 10b-5

Question 51
Multiple Choice

Which of the following is true of Rule 10b-5? A) Privity of contract is a necessity for bringing a lawsuit under this rule. B) Civil private lawsuits are not permitted under this rule. C) Only purchasers and sellers of securities can sue under this rule. D) Ordinary negligence is a violation of this rule.

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Q 52
In which of the following ways can an accountant defeat the imposition of liability under Section 18(a)? A) if he or she can show that the misleading statement was made to protect the company from bankruptcy B) if he or she had acted out of recklessness C) if he or she was an employee to the plaintiff D) if he or she can show that the plaintiff had knowledge of the false statement
Q 53
Why do accountants come under the purview of Section 18(a) of the Securities Exchange Act of 1934? A) because they often file reports and other documents with the Securities and Exchange Commission (SEC) on behalf of clients B) because certified public accountants (CPAs) are directly employed by the Securities and Exchange Commission (SEC) C) because all companies require an accountant's approval before buying securities from the Securities and Exchange Commission (SEC) D) because securities can only be bought through a certified public accountant (CPA)
Q 54
________ is a rule that limits a defendant's accountability to his or her equivalent degree of fault. A) Privity of contract B) Due diligence defense C) Proportionate liability D) Ultramares doctrine
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