Fraudulent transaction.
Section 29
SEC. 29. Fraudulent transaction.—(a) It shall be unlawful for any person, directly or indirectly, in connection with the purchase or sale of any securities — To employ any device, scheme, or artifice to defraud, or To obtain money or property by means of any untrue statement of a material fact or any omission to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading, or To engage in any act, transaction, practice, or course of business which operates or would operate as a fraud or deceit upon any person. (b) It shall be unlawful for any person to describe a security to a second person, without purporting to offer it for a consideration received or to be received directly or indirectly from the issuer, any other person interested in buying or selling the security, an underwriter, broker, dealer, or investment adviser, or a controlling, controlled, or commonly controlled person of any such person, unless he concurrently discloses the source of the consideration or the nature of or reason for his employment or if the second person or his agent in the transaction is identified, that information is known to the second person. The above paragraph does not apply to the usual remuneration received by (1) a newspaper, periodical, or radio or television station for publishing in good faith advertisement that clearly appears to be the statement of another person published at his expense, or (2) an employee or other person who prepares an advertisement or other description that appears over the name of the person for whom it is prepared rather than the person preparing it. The Commission shall promulgate rules that it may deem necessary or appropriate in the public interest or for the protection of investors to implement this Section. (c) This Section shall also apply to exempt securities and exempt transactions. (n)