Section 16(b)of the 1934 Act governs __________ by officers,directors,and greater-than-10% shareholders of equity securities of a public company.

Question

Quizplus · Accepted Answer

Section 16(b) of the 1934 Act requires officers, directors, and greater-than-10% shareholders of equity securities of a public company to disgorge any short-swing profits earned within a six-month period. This prevents insiders from using inside information to make quick profits at the expense of other shareholders. It does not pertain to fraud, deceptive practices, or unorthodox transactions.

Section 16(b)of the 1934 Act Governs __________ by Officers,directors,and Greater-Than-10