Prohibitions against insiders from engaging in short-swing profits are enforced by the
A) Securities and Exchange Commission (SEC).
B) Federal Trade Commission (FTC).
C) Federal Reserve.
D) issuer of the security or by a person who owns a security of the issuer.
E) executive officers, accounting officers, and chief financial officers.

Question

Quizplus · Accepted Answer

While the Securities and Exchange Commission (SEC) enforces the requirements of Section 16 that insiders file certain documents, the SEC does not enforce the provision that prohibits insiders from engaging in short-swing profits. This provision of Section 16 is enforced by civil actions filed by the issuer of the security or by a person who owns a security of the issuer.

Prohibitions Against Insiders from Engaging in Short-Swing Profits Are Enforced