Cathy Is an Accountant with Discount Retail Corporation

Multiple Choice

Cathy is an accountant with Discount Retail Corporation. Efrem buys Discount Retail stock and loses money on the investment. To recover from Cathy under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, Efrem must prove​

A) ​only the purchase and sale of a security.
B) ​fraud, reliance, materiality, and lack of knowledge about securities.
C) ​fraud, reliance, materiality, and incompetence.
D) ​fraud, reliance, materiality, causation, and scienter.