________ Requires That Any Profits Made by a Statutory Insider

question 64

Multiple Choice

________ requires that any profits made by a statutory insider on transactions involving short-swing profits belong to the corporation.

• A) Section 5 of the Securities Act of 1933
• B) Section 12 of the Securities Act of 1933
• C) Section 16(b) of the Securities Exchange Act of 1934
• D) SEC Rule 10b-5

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Definitions:

Callable Bonds

Bonds that give the issuer the right but not the obligation to redeem the bonds before their maturity date, usually at a predefined call price.

Bond Issuer

A bond issuer is an entity, such as a corporation, government, or municipality, that raises funds by issuing bonds to investors, in return for borrowing money over a specified period at an agreed interest rate.

Promissory Notes

Written, legally binding promises to pay a specified sum of money at a defined future date.

Installment Notes

A form of debt or loan that is paid back in regular, periodic installments, often including both principal and interest.