Law 3102 Spring 2011 10b 5 insider question model answer

Law 3102 Spring 2011 10b 5 insider question model answer -...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
I. Rule 10b-5/ Insider Trading QUESTION REVIEW MODEL ANSWER Rule 10b-5 states: “It shall be unlawful for any person, directly or indirectly, …….(a) to employ any device, scheme, or artifice to defraud; (b) to make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; or (c) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person.” The plaintiff in a 10b-5 suit must prove the following: i. Material misinformation . The defendant affirmatively misrepresented a material fact, or omitted a material fact that made his statement misleading, or remained silent in the face of a fiduciary duty to disclose a material fact. Without the existence of a fiduciary duty, silence is not actionable under Rule 10b-5. ii.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/09/2011 for the course LAW 1101 taught by Professor Reed during the Spring '08 term at CUNY Baruch.

Page1 / 2

Law 3102 Spring 2011 10b 5 insider question model answer -...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online