This page is no longer current. You are being redirected to the current text at http://www.law.cornell.edu/uscode/text/15/78j. If you are not forwarded to the new page, please click here. To avoid this message in the future, please select your links from the Table of Contents page at http://www.law.uc.edu/CCL/sldtoc.html.

 Securities Lawyer's Deskbook
                         published by The University of Cincinnati College of Law
UC Law logo

Notice: The information on this page may not be current. To learn more, please click here.



Securities Exchange Act of 1934





Section 10 -- Manipulative and Deceptive Devices


It shall be unlawful for any person, directly or indirectly, by the use of any means or instrumentality of interstate commerce or of the mails, or of any facility of any national securities exchange--

    1. To effect a short sale, or to use or employ any stop-loss order in connection with the purchase or sale, of any security registered on a national securities exchange, in contravention of such rules and regulations as the Commission may prescribe as necessary or appropriate in the public interest or for the protection of investors.

    2. Paragraph (1) of this subsection shall not apply to security futures products.

  1. To use or employ, in connection with the purchase or sale of any security registered on a national securities exchange or any security not so registered, or any securities-based swap agreement (as defined in section 206B of the Gramm-Leach-Bliley Act), any manipulative or deceptive device or contrivance in contravention of such rules and regulations as the Commission may prescribe as necessary or appropriate in the public interest or for the protection of investors.

Rules promulgated under subsection (b) that prohibit fraud, manipulation, or insider trading (but not rules imposing or specifying reporting or recordkeeping requirements, procedures, or standards as prophylactic measures against fraud, manipulation, or insider trading), and judicial precedents decided under subsection (b) and rules promulgated thereunder that prohibit fraud, manipulation, or insider trading, shall apply to security-based swap agreements (as defined in section 206B of the Gramm-Leach-Bliley Act) to the same extent as they apply to securities. Judicial precedents decided under section 17(a) of the Securities Act of 1933 and sections 9, 15, 16, 20, and 21A of this title, and judicial precedents decided under applicable rules promulgated under such sections, shall apply to security-based swap agreements (as defined in section 206B of the Gramm-Leach-Bliley Act) to the same extent as they apply to securities.


Legislative History


June 6, 1934, c. 404, Title I, § 10, 48 Stat. 891; Dec. 21, 2000, Pub.L. 106-554, § 1(a)(5), 114 Stat. 2763.



Notice to Users: The Deskbook is made available with the understanding that the University of Cincinnati College of Law is not engaged in rendering legal, accounting or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. See Terms and Conditions of Use.  UC Brand Ingot

© Copyright 1998-2011, University of Cincinnati, All Rights Reserved
 Contact: ronald.jones@uc.edu