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Question
Which of the following statements is true of short-swing profits?
A. Short-swing profits refer to any profits made by insiders who buy and sell company stock within a three-month time period.
B. The short-swing profits rule of Section 16 depends on misuse of information.
C. Short-swing profits refer to those profits that have been made within a six-month time period.
D. The short-swing profits policy takes into consideration order of purchase and sale in determining its legality.
E. Short-swing profits are calculated on the highest price in and the lowest price out during any fiscal period.
Answer
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