Damages Available per Rule 10b5 Action

Damages Available per Rule 10b5 Action

Assessment

Interactive Video

Business, Social Studies

University

Hard

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FREE Resource

The video tutorial explains the types of damages available under Rule 10B5 actions. It covers how both purchasers and sellers who are defrauded can claim actual damages, which is the difference between the security's actual value and the price paid or received. Additionally, the SEC can impose treble damages in enforcement actions to deter insider trading. The tutorial emphasizes the importance of these damages in discouraging fraudulent activities in securities trading.

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5 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What types of damages can a plaintiff receive under Rule 10B5?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

How can a defrauded purchaser calculate their damages?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

What additional costs might a defrauded purchaser claim?

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OFF

4.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the potential recoveries for a seller who is defrauded?

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5.

OPEN ENDED QUESTION

3 mins • 1 pt

What does the SEC allow in terms of damages in enforcement actions?

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OFF