Rule 10b-5

Laws & Regulations SEC Financial Terms Dictionary

Contents

Rule 10b-5, adopted in 1934 by the Securities and Exchange Commission (SEC), is directed against securities fraud.

Two related rules, Rule 10b5-1 and Rule 10b5-2, were issued in 2000 to create a more up-to-date legal perspective on securities fraud.
Rule 10b-5 deals with cases of “insider trading”, when confidential information is used to manipulate the stock market in one’s favor.