Section 16 of the 1934 Act prohibits short-swing trading on the part of officers, directors, and controlling shareholders who a. trade their shares in order to invest in another company. b. own more than 10% of the company. c. are also on the board of directors of the company. d. own more than 25% of the company.

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Business

Amiya Newton

4 February, 08:50

Section 16 of the 1934 Act prohibits short-swing trading on the part of officers, directors, and controlling shareholders who a. trade their shares in order to invest in another company. b. own more than 10% of the company. c. are also on the board of directors of the company. d. own more than 25% of the company.

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Kailyn · Answer 1

Option B

Explanation:

In simple word, Section 16 refers to th provision in the Stock Exchange Act of 1934 (SEA) that sets out the report published obligations under which directors, officers and key shareholders are legally obliged under adhere.

As per Section 16, anybody who is a sole beneficiary of even more of some 10 percent of a corporation, explicitly or implicitly, or any chairman or manager of the lender of such a safety, is required to submit the declarations based on section 16.

The 1934 Securities and Exchange act is a federal law governing secondary securities trading across the Us. The wide-ranging law was developed in 1934 as part of an attempt to ensure greater transparency in the financial transactions and less corruption.