Section 16(B) -Short Swing

Question 1

Section 16 B short swing profits

Answer 1

Section 16 be commonly referred to as short swing profits under the act of 34 prohibit specific individual from profiting by purchasing and selling company stock within six months period.

Director officers are more than 10% shareholder must return to the corporation any profit realize from any purchase and sale or sale or purchase within six months

Applies to corporation with stock on the national exchange or 500 shareholder and more than 10 million in acid

Question 2

Elements of 16 B

Answer 2

1. Strict liability.
2. Purchase and sale.
3. Timing.
4. Standing.
5. Statue of limitation.
6. Profits.

Question 3

Timing

Answer 3

Beneficial owner must have held more than 10% immediately before the purchase and sale of Security

Question 4

Profits

Answer 4

The court will take the price and the lowest purchase price as long as they were within the six months