Insiders would violate the short-swing profits rule (16b) of the 1934 Act by buying stock on January 1 and selling on May 1.

Name: Insiders would violate the short-swing profits rule (16b) of the 1934 Act by buying stock on January 1 and selling on May 1.
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Question

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The short-swing profits rule (Section 16(b) of the Securities Exchange Act of 1934) applies to purchases and sales within a 6-month period, so selling stock within 4 months of purchase would potentially violate this rule for insiders.

Insiders Would Violate the Short-Swing Profits Rule (16b) of the 1934