Two of the Four Tactics Suggested in Our Text for Increasing

question 88

True/False

Two of the four tactics suggested in our text for increasing management's power are: (1) Answer every challenge, and (2) Get those who can help you indebted to you.

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Definitions:

Section 16(b)

A provision under the Securities Exchange Act of 1934 that seeks to prevent insider trading by requiring profits gained from short-swing transactions by corporate insiders to be returned to the corporation.

Short-Swing Profits

Profits made from the sale of company stock within any six-month period by a statutory insider.

Securities Trading

The buying and selling of securities such as stocks, bonds, and options, typically conducted through exchanges or over-the-counter markets.

National Securities Markets Improvement Act

A 1996 U.S. law aimed at simplifying securities regulation by coordinating federal and state authority.