To recover damages under section 10(b) of the securities exchange act and the corresponding sec rule 10b-5, a buyer or seller of a security must prove:
For action brought under Section 10(b) 1.)There was a material misrepresentation or omission 2.) The plaintiff suffered damages 3.) The plaintiff relied on the fraudulent statement and 4.) existence of scienter Both 10(b) and 10b-5 cover registered and unregistered securities, and not just original issuances.
