Short-Swing Profit

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To deter insiders from profiting on short-term trading transactions in the stock of their corporation, Section 16(b) of the Securities Exchange Act of 1934 requires the company to recover from insiders the statutory "profit" realized in either a purchase and sale or a sale and purchase of the company's stock which takes place within any six month period. Also, transactions in different types of derivative securities relating to the same underlying equity security will be matched with each other and with transactions in the underlying equity security for the recovery of short-swing profits.
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