This is designed to stop speculative insider trading on the basis of insider information.

Question

Quizplus · Accepted Answer

Under the 1934 Act,any profit made by an insider is recoverable by the issuer if the profit resulted from the purchase and sale (or the sale and purchase)within less than a six-month period of any class of the issuer's equity securities.This regulation of short-swing profits is designed to stop speculative insider trading on the basis of information that "may have been obtained by such owner,director,or officer by reason of his relationship to the issuer."

This Is Designed to Stop Speculative Insider Trading on the Basis