Are the Rules on Short-Swing Profits Under Section 16(b)of the Securities

question 27

Essay

Are the rules on short-swing profits under Section 16(b)of the Securities Exchange Act of 1934 too restrictive or not restrictive enough? Merely because one is a statutory insider,is it proper to limit his or her ability to make a profit on the company's stock? Alternatively,should the 6-month period be longer? What is the theory behind making the profits belong to the corporation?

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Definitions:

Primary Sex Characteristics

The physical structures directly related to reproduction, such as ovaries in females and testes in males.

Secondary Sex Characteristics

These are features that appear during puberty, distinguishing male and female bodies, but are not directly involved in reproduction.

Adrenal Glands

A pair of endocrine glands that sit just above the kidneys and secrete hormones (epinephrine and norepinephrine) that help arouse the body in times of stress

Testosterone

The most important male sex hormone. Both males and females have it, but the additional testosterone in males stimulates the growth of the male sex organs during the fetal period, and the development of the male sex characteristics during puberty.