Rule 10b-5

Rule 10b-5 is a regulation enforced by the U.S. Securities and Exchange Commission (SEC) that prohibits fraud in the buying or selling of securities. It makes it illegal to deceive investors by making false statements, omitting important information, or engaging in any act that defrauds someone in connection with securities transactions. Essentially, this rule helps ensure that all investors have access to honest and accurate information, promoting fair play in financial markets and protecting investors from dishonest practices.