The Following Stock Transactions Were Completed by the Executive Vice

question 88

Multiple Choice

The following stock transactions were completed by the executive vice president of Vinco, Inc., a publicly traded corporation: January 12, 2013 - EVP sells 100 shares @ $40 per share May 5, 2013 - EVP buys 100 shares @ $20 per share June 1, 2013 - EVP sells 100 shares @ $30 per share
Which of the following statements is correct?

• A) EVP has a short-swing profit of $200.
• B) EVP has a net loss of $100.
• C) EVP has a short-swing profit of $100.
• D) EVP has a short-swing profit of $300.

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Definitions:

Assets

Refers to resources owned by a company or individual that have economic value and can provide future benefits.

Financial Theory

The study of economics that examines ways to manage and allocate financial resources, analyzing financial systems and markets.

Economics

The discipline within social science that examines the decision-making process of individuals, governments, companies, and countries in distributing resources to fulfill their desires and requirements.

S Corporations

A special tax status granted to certain corporations, allowing income to be passed through to shareholders and taxed at individual rates.