Which of the Following Statements Is Definitely True Regarding Transactions

question 41

Multiple Choice

Which of the following statements is definitely true regarding transactions that are called short swing profits?

• A) These transactions involve buying and selling of those securities that are exempt from registration under "Regulation D)"
• B) These transactions take place when the securities are being offered to the accredited investors.
• C) These are in-and-out transactions that might be used to manipulate securities.
• D) These transactions involve buying and selling of securities by the directors of the company.

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Definitions:

Oral Promise

A commitment or assurance given verbally, not in written form, which may or may not be legally binding depending on the context.

Capital Contribution

The amount of money or assets provided by an owner or partner to a business for use as capital.

Limited Partner

An investor in a partnership who has limited liability to the extent of their investment in the partnership and does not participate in day-to-day management.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when entrusted with care of money, property, or secrets.