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Full-Text Articles in Securities Law
Securities Regulation-Civil Liability Under Rule X-10b-5 For Fraud In The Purchase Or Sale Of Securities, J. David Voss S.Ed.
Securities Regulation-Civil Liability Under Rule X-10b-5 For Fraud In The Purchase Or Sale Of Securities, J. David Voss S.Ed.
Michigan Law Review
On May 21, 1942 the Securities and Exchange Commission, pursuant to section 10(b) of the Securities Exchange Act of 1934, promulgated rule X-10B-5.2 The purpose of the new rule was apparently to close a loophole in the then existing pattern of regulation of the purchase and sale of securities. The loophole resulted from a gap between section 17(a) of the Securities Act of 1933, which prohibits the use of fraud in the sale of securities by any person, and section 15(c)(1) of the Securities Exchange Act of 1934, which prohibits the use of fraud in the sale or purchase of …