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Inside trading liability and per se violation

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Could you please help me to answer these two questions:
1. In the context of insider trading liability, discuss the differences between Rule
10b-5 and Section 16.

2. What are per-se violations? Give two examples.

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Solution Summary

This 305 word solution discusses insider trading liability, specifically, the difference between Rule 10b-5 and section 16. Additionally, it defines per-se violation and outlines some of the forms that this violation can take. It provides a complete list of reference sources.

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Q. In the context of insider trading liability, discuss the differences between Rule 10b-5 and Section 16.
Rule 10b-5 is applicable when trading liability arises when trader uses or has knowing possession of material nonpublic information, i.e. a person trades on the basis of material information which is not known to others and uses this information to buy and sell securities.

The section 16 of the Securities Exchange Act prohibits short swing profits from sale and purchase of securities made by a ...

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