Laws: Cases and Codes : U.S. Code : Title 15 : Section 78j


   
U.S. Code as of: 01/19/04
Section 78j. 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 - 
        (a)(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.
        (b) 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) of this section 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) of this section 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
    77q(a) of this title and sections 78i, 78o, 78p, 78t, and 78u-1 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.



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