Section 16 of the 1934 Act Defines an Insider as an Officer,director,or

question 72

Multiple Choice

Section 16 of the 1934 Act defines an insider as an officer,director,or shareholder who owns _______ or more of the company's total stock.

• A) 5 percent
• B) 10 percent
• C) 15 percent
• D) 20 percent

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Definitions:

Declared

Often refers to the official announcement by a company's board of directors of a dividend or other corporate action.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was put into use.

Original Cost

The initial monetary value of an asset, including the purchase price and any related acquisition costs, but before depreciation or amortization.

Decrease

A reduction or decline in quantity, size, or overall value of an item or entity.