According to Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934,which of the following constitute(s) a material omission or misrepresentation during a securities transaction?

A) A change in the status of litigation against the company.
B) A change in dividends.
C) A new product,process,or discovery.
D) A change in the status of litigation against the company; a change in dividends; or a new product,process,or discovery.
E) A change in the status of litigation against the company or a change in dividends,but not a new product,process or discovery.

Question

Izzan Zikri · Accepted Answer

Final Answer : D, Explanation :  If a material omission or misrepresentation occurs during a securities transaction,the individual has violated Section 10(b)and Rule 10b-5 of the Securities Exchange Act of 1934.Examples of material information include the following:1.A change in the status of litigation against the company.2.A change in dividends.3.A contract for the sale of corporate assets or for the purchase of assets.4.A new product,process,or discovery.5.A significant change in the financial status of the company.

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