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Full-Text Articles in Law
The Duty To Correct Another’S Material Misrepresentations: A Contextual Approach For Analyzing Fraudulent Behavior Under Rule 10b-5, Jenna Koleson
The Duty To Correct Another’S Material Misrepresentations: A Contextual Approach For Analyzing Fraudulent Behavior Under Rule 10b-5, Jenna Koleson
Saint Louis University Law Journal
Section 10(b) of the 1934 Securities and Exchange Act is the broadest anti-fraud provision within securities laws and is enforced through Rule 10b-5, which makes it unlawful for any person, in connection with the purchase or sale of any security, to defraud, misrepresent material facts, omit material facts, or engage in any practice which operates as fraud or deceit upon any person. In promulgating Section 10(b) and Rule 10b-5, Congress, and the SEC by way of Congressional authority, designed these laws to encompass the infinite variety of devices by which undue advantage could be taken of investors and corporations. Another …
Aligning Incentives With Equity: Employee Stock Options And Rule 10b-5, Matthew T. Bodie
Aligning Incentives With Equity: Employee Stock Options And Rule 10b-5, Matthew T. Bodie
All Faculty Scholarship
When the Internet boom was in full swing and the stock markets skyrocketed to new levels, companies new and old used stock options to attract and retain employees. Implicit in those options was the promise that employees could participate in the growth of a company's value. However, as the scandals involving WorldCom, Enron, and Global Crossing demonstrate, corporate managers were not always honest with employees or public investors about the company's true value. Public investors can seek civil remedies for securities fraud through a private action under the Securities and Exchange Commission's Rule 10b-5. The Rule's purchase or sale requirement, …