Which of the Following Is True About Rule 16(a)of the Securities

question 66

Multiple Choice

Which of the following is true about Rule 16(a) of the Securities Exchange Act of 1934 regarding short-swing profits?

• A) It applies only to officers and directors of the corporation.
• B) It provides for recovery from a statutory insider by the other party to the transaction.
• C) It covers any trades occurring within one year of each other.
• D) It provides that any profits made by a statutory insider on trades occurring within six months of each other belong to the corporation.
• E) It provides that any profits made by a statutory insider on trades occurring within six months of each other belong to the corporation, but only if insider information was used to generate the profits.

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Definitions:

Oral Examinations

A form of assessment where questions are asked and answered verbally, often used in academic and professional settings.

Arbitration

A form of alternative dispute resolution where an impartial third party, the arbitrator, resolves disputes between parties outside of court.

Motion For Summary Judgment

A legal motion requesting the court to rule in the mover’s favor without a full trial, based on the evidence submitted.

Jury

A group of citizens assembled to hear evidence in a trial and render a verdict on matters of fact in civil or criminal cases.