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Section 16(a) of the Securities and Exchange Act of 1934

question 53

Essay

Section 16(a) of the Securities and Exchange Act of 1934, as amended in 1990, requires that the officers, directors, and principal shareholders of companies disclose the extent of their ownership of equity securities of the company and any changes in the ownership. Section 16(b) permits companies to recover trading profits realized by such people arising from short-swing transactions in company securities. Do you think that, as a result of these laws, the government will be forced to spend more money on its auditing and enforcement efforts? Explain.

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Definitions:

Counterfeits

Imitation products made or sold, typically illegally, with the intent to deceive consumers by passing them off as genuine branded goods.

Marketers

Individuals or entities involved in the promotion, selling, and distribution of products or services, aiming to meet consumers' needs and drive sales.

Counterfeiting

The act of making an imitation of an item, especially with the intent to deceive or defraud, by passing off the fake item as genuine or original.

Inauthentic

Lacking genuineness or sincerity, often applied to actions, products, or statements that do not reflect true intentions or values.

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