Dino,a director of LetsGo Inc.,purchases 100 shares of the company at $100 per share on 5^th January 2011 and sells them on 15^th February at $110 per share.Because the shares were bought and sold within a six-month period,Dino will have to return the $1,000 profit to the company under the _____ rule.

Question

Quizplus · Accepted Answer

The rule in question is the short-swing profit rule, which requires corporate insiders (such as directors) to disgorge any profits made within a six-month period from buying and selling company shares. This rule is designed to prevent insiders from using their position to make quick profits at the expense of other shareholders. The other answer choices are not relevant to this scenario.

Dino,a Director of LetsGo Inc