Rule 10b-5 Under Section 10(b)of the Securities Exchange Act of 1934

Rule 10b-5 under Section 10(b) of the Securities Exchange Act of 1934 imposes liability on an accountant for violation of certain duties. Which of the following is an investor not required to prove to recover from a CPA?

A) A material, factual misrepresentation or omission.
B) Reliance by the plaintiff on the financial statements.
C) Damages suffered as a result of reliance on the financial statements.
D) The security price was artificially inflated as a result of the materially misstated financial statements.

Correct Answer:

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