Consider the Following Transactions by a Director of a Corporation

question 146

Essay

Consider the following transactions by a director of a corporation listed on the National Stock Exchange.
​September 1,2016,purchased 100 shares of his company's stock at $10 per share.
​October 30,2016,sold the 100 shares of stock for $7 per share.
​November 30,2016,purchased 100 shares of his company's stock for $5 per share.
​Does the director have any liability under 16b?

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Definitions:

Balance Sheet

A balance sheet is a financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time, providing insight into its financial health.

Statement of Cash Flows

A financial report that shows the cash inflows and outflows for a business over a specific period, helping to assess its liquidity, solvency, and financial flexibility.

Top Down Plans

Planning approach that begins at the highest level of an organization and cascades down, where objectives, strategies, and plans are decided upon at the top and then implemented in successive layers below.

Bottom Up Planning

A planning approach that starts at the operational level, with each segment or department developing its own plans to contribute to the overall strategic goals of the organization.