Securities Exchange Act — 15 USC Sec. 78j(b— - Rule 10b-5(c) - 17 C.F.R. Sec. 240.10b-5 — Fraudulent Practice or Course of Dealing is a federal law that prohibits fraud in the purchase or sale of any security. It is designed to protect investors from deceptive or manipulative practices in the stock market. The Rule 10b-5(c) of the Securities Exchange Act of 1934 states that it is unlawful for any person to directly or indirectly use any manipulative or deceptive device or contrivance in connection with the purchase or sale of any security. The rule covers a wide range of fraudulent activities, including the making of false statements, insider trading, market manipulation, and other deceptive practices. Under the Rule 10b-5(c), fraudulent practices can include activities such as making false or misleading statements, omitting material facts, or engaging in a course of dealing that would mislead or deceive investors. There are three types of fraudulent practices or courses of dealing: 1) traditional frauds, 2) manipulative activities, and 3) insider trading. Traditional frauds are deceptive practices such as making false or misleading statements to investors or omitting material facts. Manipulative activities involve manipulating the market or stock price to gain an advantage. These activities include market timing, scalping, wash trading, and front running. Insider trading is the illegal practice of trading on the basis of material nonpublic information. This includes trading on the basis of insider knowledge or tips received from someone with knowledge of the company’s operations. The Securities Exchange Act — 15 USC Sec. 78j(b— - Rule 10b-5(c) - 17 C.F.R. Sec. 240.10b-5 — Fraudulent Practice or Course of Dealing is enforced by the U.S. Securities and Exchange Commission (SEC). The SEC can bring civil or criminal action against anyone who violates the rule.