Section 16(b) of the 1934 Act differs from Rule 10b-5 in that the latter:
A) applies to transfers within 6 months of each other.
B) only applies to officers, and directors.
C) requires material inside information.
D) only applies to 10% shareholders.

Question

Quizplus · Accepted Answer

Section 16(b) of the 1934 Act is designed to prevent short-swing profits by insiders, without requiring proof of insider trading, whereas Rule 10b-5 requires the use of material non-public information in connection with the purchase or sale of securities.

Section 16(b) of the 1934 Act Differs from Rule 10b-5