Section 16 of the Exchange Act provides transparency of all stock trades by insiders and prohibits insiders from earning short-swing profits.

Question

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Section 16 of the Exchange Act requires insiders of a public company to report trades of the company's securities and prohibits them from making short-swing profits (profits made within a six-month period) to ensure transparency and prevent abuses of insider information.

Section 16 of the Exchange Act Provides Transparency of All