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:

Medium of Exchange

A mechanism or item used to facilitate trade by avoiding the limitations of barter, such as currency or digital forms of money.

MV Rises

A notation that can imply an increase in the velocity of money, which is the frequency at which one unit of currency is used to purchase domestically-produced goods and services within a given time period.

PQ Falls

This term is not sufficiently defined to provide a clear and specific definition without additional context; it could potentially relate to a concept within economics, involving a decrease in quantity (Q) and price (P).

PQ Rises

Indicates an increase in the product of price (P) and quantity (Q), suggesting growth in total revenue or output.