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Are the Rules on "Short-Swing" Profits Under Section 16(b)of the Securities

Question 130

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Are the rules on "short-swing" profits under Section 16(b)of the Securities Exchange Act of 1934 too restrictive,or not restrictive enough? Merely because one is a statutory insider,is it proper to limit his or her ability to make a profit on the company's stock? Alternatively,should the six-month period be longer? What is the theory behind making the short-swing profits belong to the corporation?

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One rationale for the law is the difficu...

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