Margo,treasurer of Zachariah Products,Inc.,bought 500 shares of her company's stock on February 23.Her son had health problems in May and she sold the stock at a profit to help pay his medical expenses.Margo:

Question

Quizplus · Accepted Answer

Margo, as an insider, is subject to the short-swing profit rule under Section 16(b) of the Securities Exchange Act of 1934, which requires insiders to return any profits made from buying and selling their company's stock within a six-month period.