Short-Swing Profits

question 37

Multiple Choice

Short-swing profits:

• A) refer to any profits made by insiders who buy and sell company stock within a three-month time period.
• B) rule of Section 16 depends on any misuse of information.
• C) by insiders, regardless of the insiders' states of mind, are absolutely prohibited.
• D) requires proof of intent to deceive under Section 10(b).
• E) liability is created by the Securities Act of 1933.

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Definitions:

Regular Time Cost

The cost associated with labor during normal working hours, excluding overtime or premium pay rates.

Over Time Cost

Expenses incurred from workers working beyond their standard hours, often paid at a higher rate.

Predictable Variability

Variations in demand, supply, or process that can be anticipated based on historical patterns, allowing for better planning and management.

Demand Management

The process of forecasting and managing customer demand to optimize supply chain and production processes.