An insider must actually use inside information in connection with the purchase and sale of securities to violate Section 16(b) of the Securities Exchange Act of 1934.

Question

An insider must actually use inside information in connection with the purchase and sale of securities to violate Section 16(b) of the Securities Exchange Act of 1934.​

Quizplus · Accepted Answer

Section 16(b) of the Securities Exchange Act of 1934 deals with the recovery of short-swing profits by insiders and does not require the actual use of inside information for a violation.

An Insider Must Actually Use Inside Information in Connection with the Purchase