5.1.2002

Sources of Securities Broker Liability and Defenses Utilized by the Broker

Federal securities laws spawned the ubiquitous Rule 10b-5, which makes it unlawful in connection with the purchase or sale of a security to (a) make an untrue statement of material fact; (b) make a statement that is misleading because of the omission of a material fact; (c) employ any device, scheme, or artifice to efraud; or (d) engage in any practice that operates as a fraud or deceit. View full article (PDF).