A Corporation Can Recapture Any Profits Realized by an Insider

question 58

True/False

A corporation can recapture any profits realized by an insider on any purchase or sale of the firm's stock within any twelve-month period.

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Definitions:

Capital Structure

The mix of debt and equity financing used by a company to fund its operations and growth.

Return on Equity Ratio

A financial ratio that measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Financial Statements

Formal records of the financial activities and condition of a business, entity, or individual, including balance sheet, income statement, and cash flow statement.

ROA

Return on Assets, a financial ratio that indicates how profitable a company is relative to its total assets, measuring how efficient management is in using assets to generate earnings.