Under what circumstances will reliance be presumed for purposes of establishing liability under Rule 10b-5?

a. If the investor shows that the defendant made a public material misrepresentation that would have caused reasonable investors to misjudge the value of the defendant's stock.
b. If the investor shows that (1) the defendant made a public material misrepresentation that would have caused reasonable investors to misjudge the value of the defendant's stock and (2) the investor traded shares of the defendant's stock in an open securities market after the misrepresentations were made and before the truth was revealed.
c. If the investor shows that (1) the defendant made a public material misrepresentation that would have caused reasonable investors to misjudge the value of the defendant's stock, (2) the investor traded shares of the defendant's stock in an open securities market after the misrepresentations were made and before the truth was revealed, and (3) the investor made specific inquiries from professionals regarding the value of the stock before trading.
d. If the investor shows that (1) the defendant made a public material or nonmaterial misrepresentation that would have caused reasonable investors to misjudge the value of the defendant's stock, (2) the investor traded shares of the defendant's stock in an open securities market after the misrepresentations were made and before the truth was revealed, and (3) the investor made specific inquiries from professionals regarding the value of the stock before trading.


b

Business

You might also like to view...

A slight change in the wording, sequence, or manner in which a question is asked does not distort its meaning or bias the response

Indicate whether the statement is true or false

Business

A work sheet heading is dated for a period of time

Indicate whether the statement is true or false

Business

The legal rights that an owner has to possess, use, and enjoy the property are known as ________

A) future interests B) estate in land C) easement rights D) estoppel by deed

Business

Electronic postage is officially known as the Information Based Indicia

Indicate whether the statement is true or false.

Business