Question

Act of 1934 includes a provision that allows a corporation to recapture any profits earned by an insider on a purchase or sale of the company's stock that occurred within a six-month period. This is known as the _____.

Answer 1

Short-swing profit.

Step-by-step explanation:

Short swing profit can be described as the profit acquired by a member of staff of a corporation who purchases stocks and then sells it.

The short swing profit rule mandates that the member of staff of a corporation returns any profit that is gotten from the purchase and sale of the company stock within a period of six months.

The short wing rule prevents corporate insiders from earning short term profits at the detriment of the organisation.