Section 16 | Practical Law
Section 16
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Section 16
Practical Law Glossary Item 4-382-3795
(Approx. 2 pages)
Glossary
Section 16
Section 16 of the
Exchange Act
requires
Section 16 insiders
to report their
beneficial ownership
(and changes in ownership) of company securities. Initial ownership and changes in ownership are reported on
Form 3
,
Form 4
, or
Form 5
, as applicable.
Section 16 also requires the disgorgement of any
short-swing profits
realized by Section 16 insiders from the purchase and sale, or sale and purchase, of equity securities of the company in any period of less than six months.
For more information, see
Practice Notes, Section 16 Reporting: Why, How, and When to Do It
and
Section 16(b) Short-Swing Profit Liability: The Perils of Turning a Quick Profit
.