An Insider Must Actually Use Inside Information in Connection with the Purchase

question 53

True/False

An insider must actually use inside information in connection with the purchase and sale of securities to violate Section 16(b) of the Securities Exchange Act of 1934.​

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Definitions:

Absorption

The process by which substances are taken up or assimilated into the body or into cells.

Disease Transmission

The process by which infectious diseases spread from one individual to another, through direct contact, vectors, or environmental means.

Inhalation

The act of breathing in; the intake of air or other substances into the lungs.

Ingestion

The process of taking food, drink, or another substance into the body through the mouth.