The following stock transactions were completed by the executive vice president of Vinco, Inc., a publicly traded corporation: January 12, 2013 - EVP sells 100 shares @ $40 per share May 5, 2013 - EVP buys 100 shares @ $20 per share June 1, 2013 - EVP sells 100 shares @ $30 per share
Which of the following statements is correct?

Question

Quizplus · Accepted Answer

The EVP has a short-swing profit of $200 because the purchase on May 5 at $20 per share and the sale on June 1 at $30 per share results in a profit of $10 per share for 100 shares, totaling $1,000. The initial sale on January 12 at $40 per share does not affect the short-swing profit calculation for the May-June transactions.

The Following Stock Transactions Were Completed by the Executive Vice