Section 16(b)differs from Rule 10b-5 in that the latter:
A) applies to transfers within 6 months of each other.
B) only applies to officers,directors and 10% shareholders.
C) allows injured investors to recover damages on their own behalf.
D) All of these.

Question

Quizplus · Accepted Answer

Section 16(b) of the Securities Exchange Act of 1934 is specifically designed to prevent insider trading by corporate insiders, such as officers, directors, and large shareholders, by requiring them to disgorge any profits made from buying and selling their company's stock within a six-month period. Rule 10b-5, on the other hand, is broader in scope and is aimed at preventing fraud in the securities market. It does not have the same restrictions regarding the time frame of trades or the status of the trader as Section 16(b). Importantly, Rule 10b-5 allows injured investors to sue for damages if they have been defrauded in the securities market, which is a key difference from Section 16(b) that does not directly provide a mechanism for injured investors to recover damages.

Section 16(b)differs from Rule 10b-5 in That the Latter