Corporate & Securities Law

Section 16(b) Quiz

By Stephen Bainbridge

I gave this to my class today as an exercise:

1. Shania is president of Acme, Inc. Her transactions were as follows:

• March 1: bought 100 shares at $10


• April 1: sold 70 shares at $12


• May 1: bought 50 shares on May 1 at $9


• May 15: sold 25 shares at $13


• December 31: sold 35 shares at $20

What liability does she have, if any?

2. Selena is not an officer or director of Ajax, Inc. At all relevant times, Ajax has 1,000 shares outstanding. Selena’s transactions are as follows:

• January 1: buys 50 shares at $10


• February 1: buys 55 shares at $10


• April 1: buys 50 shares at $10.


• May 1: sells 60 shares at $15


• May 2: sells 55 shares at $20

What liability does she have, if any?

Full post as published by BusinessAssociationsBlog.com on February 05, 2008 (boomark / email).