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

question 58

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?

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Definitions:

Inferential Statistics

The branch of statistics that focuses on drawing conclusions about a population based on a sample taken from it, usually through hypothesis testing or estimation.

Example

An instance or case that is representative of a concept or demonstrates a particular situation or principle.

Net Present Value

A financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period.

Annual Revenue

The total amount of money earned from the sale of goods or services in a fiscal year before any expenses are subtracted.