Manipulative, Deceptive or Fraudulent Devices

What this video covers

• The three categories of prohibited conduct under the SEC antifraud rule: untrue statements of material fact, material omissions, and fraudulent courses of business
• Why a material omission is only a violation when it makes other statements misleading, and why silence alone is not automatically fraud
• How the FINRA antimanipulation rule mirrors the SEC antifraud rule but applies specifically to FINRA member firms and their associated persons
• The scope trap on the OTC antifraud rule: it covers only brokers, dealers, and municipal securities dealers, not any person
• When the broad SEC antifraud rule is the safer answer versus when the OTC-specific rule or the FINRA rule is required
• The SEC non-member misrepresentation rule and its prohibition on lying about firm registration status or the merits of any security
• How to apply the "when in doubt, go broad" strategy for ambiguous fraud scenarios that do not specify OTC