Section 16(b) Short-Swing Profit Liability: The Perils of Turning a Quick Profit | Practical Law
This Practice Note discusses the liability for realizing short-swing profits imposed by Section 16(b) of the Securities Exchange Act of 1934, as amended, including who is liable under the statute and for what actions, timing considerations, how liability is enforced and exemptions from liability. This Note also discusses how short-swing profits are calculated, providing detailed explanations and examples of matching multiple purchases and sales.