Chapter 5: Ethical Practices and Obligations - E. Fraud and Misrepresentation

Question 1

Fraud and Misrepresentation

Answer 1

The term manipulative, deceptive, or other fraudulent device or contrivance, as used in the Act, is defined to include the following:

• Any act that operates or would operate as a fraud or deceit upon any person; or
• Any untrue statement of a material fact and any omission of a material fact necessary for the investor to have known in order for them to make a reasonable decision.