Asked by Katherine Lopez on May 10, 2024
Verified
Orbital Flights Inc. is required to register its securities under Section 12 of the Securities Exchange Act of 1934. This means that, with respect to Orbital, Section 16(b) of the act covers
A) the declaration of dividends by Orbital's board of directors.
B) the later re-registration of Orbital's securities.
C) the short-swing activities of Orbital's insiders.
D) the solicitation of proxies from Orbital's shareholders.
Securities Exchange Act
A U.S. law enacted in 1934 that governs the trading of securities, such as stocks and bonds, aimed at protecting investors and maintaining fair markets.
Register Securities
The process of filing securities with the appropriate regulatory body, providing necessary information before they can be legally sold to the public.
- Familiarize oneself with the legal requirements for public corporations under the auspices of the Securities Act of 1933 and the Securities Exchange Act of 1934.
Verified Answer
DW
Delina WoldelibanosMay 15, 2024
Final Answer :
C
Explanation :
Section 16(b) of the Securities Exchange Act of 1934 addresses the profits from short-swing trading by insiders of a company, such as directors, officers, and large shareholders, within a six-month period. It does not concern the declaration of dividends, re-registration of securities, or the solicitation of proxies.
Learning Objectives
- Familiarize oneself with the legal requirements for public corporations under the auspices of the Securities Act of 1933 and the Securities Exchange Act of 1934.