Respuesta :
OnSpec, Inc., and its officers, directors, and shareholders, buy and sell securities. Section 16(b) of the Securities Exchange Act of 1934 covers purchases and sales of securities involving "short-swing profits".
What is Securities Exchange Act of 1934 Section 16(b)?
An act to prohibit unfair and unethical practices on such exchanges and markets, and for other objectives, to provide for the regulation of securities exchanges and over-the-counter markets operating in domestic, international, and postal commerce.
A buy and sale, or sale and purchase, within six months is referred to in Section 16(b) as a "short-swing transaction." To deter insider trading, Congress incorporated the clause into the Original Exchange Act.
Key features of 1934 section(b) act -
- The restriction was put in place to stop insiders from exploiting information for the goal of generating quick money since they had more access to key corporate information.
- The term "insider" refers to any officers, directors, or stockholders who hold stock that, directly or indirectly, results in beneficial ownership of more than 10% of the company's ordinary stock or other class of equity. Section 16 imposes registration requirements for insiders.
To know more about Securities Exchange Act of 1934, here
https://brainly.com/question/13522021
#SPJ4
