Section 16(b) of the 1934 Act differs from Rule 10b-5 in that the latter:
A) applies to transfers within 6 months of each other.
B) only applies to officers, directors, and 10% shareholders.
C) requires material inside information.
D) All of these.

Question

Quizplus · Accepted Answer

Rule 10b-5 requires the presence of material inside information to establish a violation, unlike Section 16(b) of the 1934 Act, which does not require material inside information but focuses on the profits made from buying and selling the company's stock within a six-month period by corporate insiders.

Section 16(b) of the 1934 Act Differs from Rule 10b-5