SEC Rule 10b-5

SEC Rule 10b-5 is a regulation that prevents misleading actions in the securities market. It prohibits any fraudulent activities related to the buying or selling of stocks and other securities. Specifically, you cannot lie, omit key facts, or deceive investors when trading. This rule aims to ensure that all investors have access to truthful information to make informed decisions, promoting fairness and trust in the financial markets. Violating this rule can lead to serious legal consequences for individuals and companies involved.