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SEC Rule 10b-5

17 C.F.R. section 240.10b-5

The central U.S. antifraud rule for securities transactions, prohibiting deceptive devices, material misstatements or omissions, and fraudulent acts in connection with purchases or sales of securities.

Use It For

Use this with Basic, TSC Industries, and Morrison to compare U.S. antifraud doctrine with Chinese false-statement liability.

Teaching Notes

The rule is short, but the doctrine around materiality, reliance, scienter, loss causation, and extraterritoriality is extensive.