What is SEC Rule 16b?

The short-swing profit rule, also known as the Section 16b rule, is an SEC regulation that prevents insiders in a publicly traded company from reaping short-term profits.

Who is Section 16 officer?

Section 16 Officer means every person who is directly or indirectly the beneficial owner of more than ten percent (10%) of any class of any equity security (other than an exempted security) which is registered pursuant to Section 12 of the Securities Exchange Act of 1934.

Who Must File Form 3?

What’s a Form 3? When a person becomes an insider (for example, when they are hired as an officer or director), they must file a Form 3 to initially disclose his or her ownership of the company’s securities. Form 3 must be filed within 10 days after the person becomes an insider.

What is a Section 16 employee?

Section 16 imposes filing standards for “insiders,” and defines insiders as any officers, directors, or stockholders who possess stock that directly or indirectly results in beneficial ownership of more than 10% of the company’s common stock or other class of equity.

When Must Form 3 be filed?

within 10 days
What’s a Form 3? When a person becomes an insider (for example, when they are hired as an officer or director), they must file a Form 3 to initially disclose his or her ownership of the company’s securities. Form 3 must be filed within 10 days after the person becomes an insider.

What is the SEC Rule?

SEC Rule 17a-4. SEC Rule 17a-4 is a regulation issued by the U.S. Securities and Exchange Commission pursuant to its regulatory authority under the US Securities Exchange Act of 1934 (Known simply as the “Exchange Act”) which outlines requirements for data retention, indexing, and accessibility for companies which deal in the trade or brokering…

What is Section 16 reporting?

Section 16 of the Exchange Act of 1934 requires the reporting of beneficial ownership by the officers, directors or stockholders who possess stock directly or indirectly resulting in beneficial ownership over 10 percent of the company’s common stock or other class of equity. Parties that fall under Section 16 are typically referred to as insiders.

What is Section 16 officer?

Section 16 Officer. “Section 16 Officer” means an “officer” as such term is defined in Rule 16(a)-1(f) of the Securities Exchange Act of 1934 of the Parent who is also an Eligible Employee of an Employer.