Violation of Section 16,a finding of short-swing liability,does not require evidence of the use of insider information and is deemed a strict liability provision.

Question

Quizplus · Accepted Answer

Section 16 imposes strict liability on insiders for profits realized from any purchase and sale or sale and purchase of the company's equity securities within a six-month period. This includes trades made with or without the use of insider information. Therefore, a finding of short-swing liability does not require evidence of the use of insider information and is deemed a strict liability provision.

Violation of Section 16,a Finding of Short-Swing Liability,does Not Require