________ requires that any profits made by a statutory insider on transactions involving short-swing profits belong to the corporation.

Question

Quizplus · Accepted Answer

Section 16(b) of the Securities Exchange Act of 1934 requires that any profits made by a statutory insider on transactions involving short-swing profits must be returned to the corporation. A statutory insider is defined as an officer, director, or beneficial owner of more than 10% of the company's equity securities. This is to prevent any insider from taking advantage of privileged information and making a quick profit at the expense of the company's shareholders. The other choices deal with different aspects of securities laws and regulations, but do not specifically address short-swing profits and insider transactions.

________ Requires That Any Profits Made by a Statutory Insider