8) insider trading: 16(b) Flashcards
1
Q
16(b) of securities exchange act of 1934: def
A
like strict liability insider trading
2
Q
16(b) aplies to:
A
1) officers
2) directors
3) shareholders that hold more than 10% of stock
3
Q
16(b): applies to: WHEN
A
(if shareholder, must have been 10%+ at both sell and buy moment: officer or director can just be sell OR buy moment)
4
Q
16(b): rule
A
profit is RECOVERABLE IF
1) made by a person applies to
2) sale of security
3) within 6 mo of buyin ghtat security
5
Q
16(b): damages calc
A
profit recoverable is maximized by matching lowest-priced buys and highest-priced sells
