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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A graphical container in software applications that allows users to input or display text.

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A feature in text editing and word processing applications that makes selected text thicker and darker to emphasize it.

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A primary tab or section in many software applications' interfaces, offering access to the most commonly used tools and functions.