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:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing for more accurate financial planning and analysis.

Materials

Raw inputs or components that are used in the manufacturing process to produce finished goods.

Activity Variance

The difference between the planned activity level and the actual activity level, used in budgeting and costing analyses.

Materials

Raw resources or supplies used in the production of finished goods.