Which of the Following Is True Regarding the State of Mind

question 25

Multiple Choice

Which of the following is true regarding the state of mind needed in order to find a violation of Section 16(b) involving short-swing trading?

• A) Liability is imposed under Section 16(b)regardless of the insider's state of mind.
• B) Intent to violate the securities laws must be found in order for there to be a violation of Section 16(b).
• C) A trader must at least act without caution in order to be found liable for violating Section 16(b).
• D) A trader must at least act negligently in order to be found liable for violating Section 16(b).

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Definitions:

Grocery store

A retail store that primarily sells food, both fresh and packaged, along with various household goods.

Consequential stranger

An individual who is not a friend or family member but has a significant impact on one's life through brief or indirect interactions.

Bourgeoisie

Owners; the class of modern capitalists who own the means of production and employ wage laborers.

Primary group

A small, tightly-knit social group characterized by long-term, intimate, and face-to-face relationships, such as family or close friends.