Statutory Liability to Third Parties - Securities Exchange Act of 1934

Question 1

Under rule 10(b) and rule 10b-5 of the 1934 act what must be proven

Answer 1

1) The CPA has knowledge of the false statements or reckless disregard of the truth.
2) Material Mistatement
3) Reliance
4) Damages involving Transactions from interstate commerce

Question 2

If a plantiff succeeds under section 10(b) Rule 10b-5 what would he be entitled to

Answer 2

Difference between amount paid and MV at the time of the lawsuit OR

Difference between amount paid and sales price if sold