Rule 10b-5

Rule 10b-5 is a regulation created under the Securities and Exchange Act of 1934. It was formally known as the Employment of Manipulative and Deceptive Practices. This rule makes it illegal for anybody to directly or indirectly use any measure to defraud, make false statements, omit relevant information, or otherwise conduct business operations that would deceive another person in the process of conducting transactions involving stock and other securities.