Question

to recover for a violation of sec rule 10(b)-5, a plaintiff is required to prove reliance on a misstatement or omission relative to the purchase of the security. group of answer choices false

Answer 1

This statement is false.

Step-by-step explanation:

While reliance is an element of a securities fraud claim, a plaintiff may also establish the reliance element by showing that the misrepresentation or omission was material and that the market as a whole relied on it. This is known as the "fraud-on-the-market" theory, which was established in Basic Inc. v. Levinson, 485 U.S. 224 (1988).