Which of the Following Statements Is True of Short-Swing Profits

question 82

Multiple Choice

Which of the following statements is true of short-swing profits?

• A) Short-swing profits refer to any profits made by insiders who buy and sell company stock within a three-month time period.
• B) The short-swing profits rule of Section 16 depends on misuse of information.
• C) Short-swing profits refer to those profits that have been made within a six-month time period.
• D) The short-swing profits policy takes into consideration order of purchase and sale in determining its legality.
• E) Short-swing profits are calculated on the highest price in and the lowest price out during any fiscal period.

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Definitions:

Prohibited by Statute

Activities or actions that are explicitly forbidden by law or statutory regulation.

Improper Financial Motive

involves pursuing financial gain in unethical or illegal ways, often compromising moral or regulatory standards.

Beneficiary's Rights

The entitlements or claims a beneficiary has by law or under the terms of a contract, such as a will or insurance policy.

Dissociation

In partnership law, the change in the relation of the partners caused by any partner ceasing to be associated with the carrying on of the business.