To recover damages under section 10 (b) of the securities exchange act and the corresponding sec rule 10b-5, a buyer or seller of a security must prove:

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Ace Michael

Social Studies

11 June, 16:40

To recover damages under section 10 (b) of the securities exchange act and the corresponding sec rule 10b-5, a buyer or seller of a security must prove:

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Schaefer · Answer 1

For action brought under Section 10 (b)

1.) There was a material misrepresentation or omission

2.) The plaintiff suffered damages

3.) The plaintiff relied on the fraudulent statement and

4.) existence of scienter

Both 10 (b) and 10b-5 cover registered and unregistered securities, and not just original issuances.