Page:United States Statutes at Large Volume 48 Part 1.djvu/916

 890 73d C ONGRESS. SESS. II. CH. 404. JU NE 6, 1934 . any statement which was at the time and in the light of the circum- stanc es under whic h it was made, false or mis leading with respect to any material fact, and which he knew or had reasonable ground to believe was so false or misleading. circulate, ror a cen- (5) For a consideration, received directly or indirectly from a sid erat ion, pred ictio ns s y y of price changes. dealer or broker, or other person selling or offering for sale or pur- chasing or offering to purchase the security, to induce the purchase or sale of any security registered on a national securities exchange by the circulation or dissemination of information to the effect that the price of any such s ecurit y will or is l ikely to rise or fal l beca use of th e market oper ations of any one or more p ersons conduc ted for Pegging of security the purpose of raising or depressing the price of such security. prices m contravention (6) To effect either alone or with one or more other persons any ofregu'ationsu series of transactions for the purchase and/or sale of any security registered on a national securities exchange for the purpose of peg- ging, fixing, or stabilizing the price of such security in contraven- tion of such rules and regulations as the Commission may prescribe as necessary or appropriate in the public interest or for the pro- tec tion o f inves tors. Effect transactions in connection with op- (b) It shall be unlawful for any person to effect, by use of any tions, etc ., on exchange. facility of 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- (1) any transaction in connection with any security whereby any party to such transaction acquires any put, call, straddle, or other option or privilege of buying the security from or selling the secur- ity to another without being bound to do so ; or (2) any transaction in connection with any security with relation to which he has, directly or indirectly, any interest in any such put, call, straddle, option, or privilege ; or (3) any transaction in any security for the account of any person who he has reason to believe has, and who actually has, directly or indirectly, any interest in any such put, call, straddle, option, or privilege with relation to such security. Rule s governi ng (c) It shall be unlawful for any member of a national securities nt ee o[ options be prescribed. exchange directly or indirectly to endorse or guarantee the perform- ance of any put, call, straddle, option, or privilege in relation to 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 inves tors. Registered warrants, right, convertible,,,,, . (d) The terms " put ", 44 call ", " straddle ", " option ", or " priv- r ity ilege " as used in this section shall not include any registered war- ra nt, ri ght, or conver tible securit y . who w illfully par tici - Lia willf of person (e) Any person who willfully participates in any act or transac- pates in prohibited tion in violation of subsection (a), (b), or (c) of this section, shall practices . b e liable to any person who shall purchase or sell any security at a price which was affected by such act or transaction, and the person so injured may sue in law or in equity in any court of competent jurisdiction to recover the damages sustained as a result of any such act or transaction . In any such suit the court may, in its discretion, require an undertaking for the payment of the costs of such suit, and assess reasonable costs, including reasonable attorneys' fees, against either party litigant . Every person who becomes liable to make any payment under this subsection may recover contribution as in cases of contract from any person who, if joined in the original suit, would have been liable to make the same payment. No action sh all be mainta ined to enfor ce any liabili ty cre ated un der thi s sect ion,
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