The Following Stock Transactions Were Completed by the Executive Vice

question 117

Multiple Choice

The following stock transactions were completed by the executive vice president of Vinco,Inc.,a publicly traded corporation: January 12,2016 -EVP sells 100 shares @ $40 per share
May 5,2016 - EVP buys 100 shares @ $20 per share
June 1,2016 - EVP sells 100 shares @ $30 per share
Which of the following statements is correct?

• A)EVP has a short-swing profit of $2,000.
• B)EVP has a net loss of $1,000.
• C)EVP has a short-swing profit of $1,000.
• D)EVP has a short-swing profit of $3,000.

---

Definitions:

Relevance

A fundamental quality of information that makes it useful for decision-making, ensuring that the information provided has the capacity to influence the decisions of its users.

Timely Basis

The practice of completing or delivering work within an agreed or expected period.

Price-Earnings Ratio

A valuation metric for stocks, calculated by dividing the market price per share by the earnings per share (EPS).

Investors' Expectations

The anticipations or beliefs that investors hold regarding future performance, earnings, and growth of a company or market.