Scienter is a requirement for liability under Section 16(b) of the Securities Ex?change Act of 1934.

Question

Quizplus · Accepted Answer

Section 16(b) of the Securities Exchange Act of 1934 imposes liability on corporate insiders who engage in short-swing trading - i.e., buying and selling the same security within a six-month period and making a profit. However, scienter (i.e., intent or knowledge of wrongdoing) is not required for liability under this section.

Scienter Is a Requirement for Liability Under Section 16(b) of the Securities