Under Rule 10b-5 a company may not have a “no comment” policy, and must act to dispel untrue rumors. Group of answer choices True False

Under Rule 10b-5 a company may not have a “no comment” policy, and must act to dispel untrue rumors.
Group of answer choices
True
False

Answer

• False
  Explanation:

• Under the Rule 10b-5, a company has no general duty to reveal any corporate developments unless if:
• It intends to trade its securities.
• To recommend trading to someone else.
• Disclose the information as a tip.
• According to the rule, silence is not misleading