Section 16 of the 1934 Act prohibits short-swing trading on the part of officers,directors,and controlling shareholders who
A)own more than 25% of the company.
B)are also on the board of directors of the company.
C)own more than 10% of the company.
D)trade their shares in order to invest in another company.

Question

Section 16 of the 1934 Act prohibits short-swing trading on the part of officers,directors,and controlling shareholders who 
A)own more than 25% of the company.
B)are also on the board of directors of the company.
C)own more than 10% of the company.
D)trade their shares in order to invest in another company.

Quizplus · Accepted Answer

Section 16 of the 1934 Act prohibits short-swing trading on the part of officers, directors, and controlling shareholders who own more than 10% of the company's shares. These insiders must report their trades to the SEC and are subject to restrictions on their ability to trade within a six-month period.

Section 16 of the 1934 Act Prohibits Short-Swing Trading on the Part