Asked by
Jonathan Marrero Rivera
on Nov 30, 2024Verified
For purposes of Section 16(b) of the 1934 Securities Exchange Act, which of the following are not "insiders"?
A) Shareholders owning more than 10 percent of the stock of a corporation listed on a national stock exchange or registered with the SEC.
B) Directors.
C) Officers.
D) All of these may be considered insiders.
Section 16(b)
A provision in the U.S. Securities Exchange Act of 1934 that aims to prevent insider trading by requiring the disgorgement of profits made from the purchase and sale, or sale and purchase, of an issuer’s equity securities within a six-month period by directors, officers, or shareholders owning more than 10% of a firm.
1934 Securities Exchange Act
A U.S. federal law that governs the trading of securities, such as stocks and bonds, to protect investors from fraud.
Insiders
Individuals who possess access to confidential information about a company or organization, such as employees, directors, or large shareholders.
- Comprehend the consequences of laws governing insider trading and the categorization of individuals considered insiders.
Verified Answer
GF
Learning Objectives
- Comprehend the consequences of laws governing insider trading and the categorization of individuals considered insiders.