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:

Save Up

The act of regularly setting aside a portion of income or resources for future use or for a specific goal.

Esker

A long, winding ridge of sand and gravel deposited by meltwater streams flowing beneath a glacier.

Meltwater Channels

Channels formed by the flow of water produced from melting ice or glaciers.

Glacial Sediment

Material deposited by glaciers as they move and melt, ranging from fine silt to large boulders.