Section 16(b) is a __________ statute because it applies even if the insider did not use any insider information or intend any stock manipulation in realizing a short-swing profit.

Question

Quizplus · Accepted Answer

Section 16(b) of the Securities Exchange Act of 1934 is considered a strict liability statute because it imposes liability for profits made from short-swing trading (buying and selling or vice versa within a six-month period) by insiders within the same company, regardless of the insider's intent or use of insider information.

Section 16(b) Is a __________ Statute Because It Applies Even