The operative language of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 limits their application to fraud "in connection with the purchase or sale of any security." The United States Supreme Court was given the opportunity to interpret the scope of that phrase in Superintendent of Insurance v. Bankers Life & Casualty Co. The purpose of this article is to point out: (1) the impact of the Court's decision on the prior legislative and judicial development of Rule 10b-5; and (2) the lack of guidance given by the rule and the need for administrative clarification.
Joe E. Armstrong,
Securities Law—Securities Transaction Incident to Corporate Fraud: The Wrenched Connection,
51 Neb. L. Rev. 678
Available at: http://digitalcommons.unl.edu/nlr/vol51/iss4/7