Wayne is the president and CEO of a corporation.He owns 25% or the company's total stock and has been selling large chunks of his holdings over the past three months.If the SEC investigates him for short-swing profits,they would do so under:

Question

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Section 16 of the '34 Act requires insiders, such as the president and CEO, to report their transactions and profits made from buying or selling their company's stock. It also imposes restrictions on their ability to make short-swing profits. Thus, the SEC would investigate Wayne for short-swing profits under Section 16 of the '34 Act. Regulation D of the '33 Act deals with exemptions from registration requirements for specific securities offerings. Rule 10(b) (5) of the '34 Act prohibits fraudulent activities in securities markets. The Private Securities Litigation Reform Act of 1995 deals with securities litigation and class action lawsuits. None of these regulations are relevant to Wayne's situation.

Wayne Is the President and CEO of a Corporation