Question

Beth is an accountant with Consumer Sales Corporation. Dona buys Consumer stock and loses money on the investment. To recover from Beth under Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 of the Securities and Exchange Commission, Dona must prove
a. nothing.
b. scienter, fraud, and reliance only.
c. scienter, fraud, reliance, and materiality only.
d. scienter, fraud, reliance, materiality, and causation.

Answer

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