Section 10(b)

Definition:

Section 10 of the Exchange Act entitled “Regulation of the Use of Manipulative and Deceptive Practices.” Subsection (b) under Section 10 makes it unlawful to use any manipulative or deceptive device or contrivance in contravention of such rules and regulations as the SEC may prescribe as necessary or appropriate for the protection of investors.

Rule 10b-5 is one of the most important rules promulgated by the SEC targeting securities fraud pursuant to its authority granted under Section 10(b). The rule prohibits any act or omission resulting in fraud or deceit in connection with the purchase or sale of any security.

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