Section 16(b) of the 1934 Act Differs from Rule 10b-5

question 49

Multiple Choice

Section 16(b) of the 1934 Act differs from Rule 10b-5 in that the latter:

• A) applies to transfers within 6 months of each other.
• B) only applies to officers, and directors.
• C) requires material inside information.
• D) only applies to 10% shareholders.

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Definitions:

Machiavellian Tendencies

Machiavellian Tendencies describe behaviors focused on manipulation, deceit, and exploitation to achieve personal goals.

Manipulate

To control or influence a person, situation, or system, often in a skillful but unfair or deceitful manner.

Personal Gain

The benefit or advantage that an individual receives or seeks from an action or decision, usually in the context of careers, business, or personal development.

Least Effective

Refers to processes, strategies, or actions that yield the poorest results compared to alternatives.