The following stock transactions were completed by the executive vice president of Vinco,Inc.,a publicly traded corporation: January 12,2016 -EVP sells 100 shares @ $40 per share
May 5,2016 - EVP buys 100 shares @ $20 per share
June 1,2016 - EVP sells 100 shares @ $30 per share
Which of the following statements is correct?

Question

Quizplus · Accepted Answer

The EVP has a short-swing profit of $2,000. The profit is calculated by matching the purchase on May 5 at $20 with the sale on June 1 at $30, resulting in a profit of $10 per share for 100 shares, totaling $1,000. Additionally, the sale on January 12 at $40 can be matched with the purchase on May 5 at $20, resulting in another $2,000 profit. However, only the $2,000 profit from the May 5 purchase and June 1 sale is considered a short-swing profit under SEC rules.

The Following Stock Transactions Were Completed by the Executive Vice